Discounted Cash Flow (DCF) Analysis Unlevered

Flex Ltd. (FLEX)

$26.765

+0.17 (+0.66%)

All numbers are in Millions, Currency in USD

Stock DCF: 18.83 | 26.765 | overvalue

Operating Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	26,305.51	24,209.87	24,124	26,041	30,346	31,571.74	32,846.99	34,173.74	35,554.09	36,990.19
Revenue (%)
EBITDA	1,144.84	1,096.24	1,390	1,456	1,693	1,629.88	1,695.71	1,764.20	1,835.46	1,909.60
EBITDA (%)
EBIT	379.89	348.20	821	972	1,192	880.61	916.18	953.19	991.69	1,031.75
EBIT (%)
Depreciation	764.95	748.05	569	484	501	749.26	779.53	811.01	843.77	877.85
Depreciation (%)

Balance Sheet Data

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Total Cash	1,696.62	1,922.69	2,637	2,964	3,294	3,003.06	3,124.36	3,250.56	3,381.86	3,518.46
Total Cash (%)
Account Receivables	2,829.16	2,718.43	4,241	3,890	4,280	4,332	4,506.97	4,689.02	4,878.42	5,075.47
Account Receivables (%)
Inventories	3,722.85	3,785.07	3,895	6,580	7,530	6,062.67	6,307.55	6,562.33	6,827.40	7,103.17
Inventories (%)
Accounts Payable	5,147.24	5,108.25	5,247	6,254	5,930	6,691.59	6,961.88	7,243.08	7,535.65	7,840.03
Accounts Payable (%)
Capital Expenditure	-725.61	-461.74	-351	-443	-635	-626.02	-651.31	-677.62	-704.99	-733.47
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 26.765
Beta	1.449
Diluted Shares Outstanding	462
Cost of Debt
Tax Rate	18.58
After-tax Cost of Debt	8.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.364
Total Debt	4,347
Total Equity	12,365.43
Total Capital	16,712.43
Debt Weighting	26.01
Equity Weighting	73.99
Wacc

Build Up Free Cash

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	26,305.51	24,209.87	24,124	26,041	30,346	31,571.74	32,846.99	34,173.74	35,554.09	36,990.19
EBITDA	1,144.84	1,096.24	1,390	1,456	1,693	1,629.88	1,695.71	1,764.20	1,835.46	1,909.60
EBIT	379.89	348.20	821	972	1,192	880.61	916.18	953.19	991.69	1,031.75
Tax Rate	48.72%	44.74%	14.15%	10.43%	18.58%	27.32%	27.32%	27.32%	27.32%	27.32%
EBIAT	194.82	192.41	704.86	870.61	970.49	640	665.85	692.75	720.73	749.84
Depreciation	764.95	748.05	569	484	501	749.26	779.53	811.01	843.77	877.85
Accounts Receivable	-	110.74	-1,522.57	351	-390	-52	-174.98	-182.05	-189.40	-197.05
Inventories	-	-62.22	-109.93	-2,685	-950	1,467.33	-244.88	-254.78	-265.07	-275.77
Accounts Payable	-	-38.98	138.75	1,007	-324	761.59	270.29	281.20	292.56	304.38
Capital Expenditure	-725.61	-461.75	-351	-443	-635	-626.02	-651.31	-677.62	-704.99	-733.47
UFCF	234.16	488.25	-570.89	-415.39	-827.51	2,940.16	644.49	670.52	697.61	725.79
WACC
PV UFCF						2,657.42	526.49	495.08	465.55	437.77
SUM PV UFCF										4,582.31

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.64
Free cash flow (t + 1)	740.30
Terminal Value	8,568.30
Present Value of Terminal Value	5,168.14

Intrinsic Value

Enterprise Value	9,750.44
Net Debt	1,053
Equity Value	8,697.44
Shares Outstanding	462
Equity Value Per Share	18.83