Discounted Cash Flow (DCF) Analysis Unlevered

InterDigital, Inc. (IDCC)

$69.84

-1.45 (-2.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 90.47 | 69.84 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 532.94307.40318.92358.99425.41417.43409.59401.90394.36386.96
Revenue (%)
EBITDA 370.87138.52149.97159.99174.08206.34202.47198.67194.94191.28
EBITDA (%)
EBIT 313.8172.4172.8778.9595.89125.08122.73120.43118.17115.95
EBIT (%)
Depreciation 57.0566.1177.0981.0478.1981.2679.7478.2476.7775.33
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 1,157.99945.78924.69926.65941.631,080.601,060.321,040.421,020.901,001.74
Total Cash (%)
Account Receivables 216.2935.0328.2786.4288.2488.2186.5684.9383.3481.77
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 10.2619.3713.3910.987.1614.3314.0613.8013.5413.28
Accounts Payable (%)
Capital Expenditure -37-36.90-37.99-42.41-38.28-43.14-42.33-41.53-40.75-39.99
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 69.84
Beta 1.110
Diluted Shares Outstanding 31.25
Cost of Debt
Tax Rate 3.93
After-tax Cost of Debt 5.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.874
Total Debt 422.75
Total Equity 2,182.71
Total Capital 2,605.45
Debt Weighting 16.23
Equity Weighting 83.77
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 532.94307.40318.92358.99425.41417.43409.59401.90394.36386.96
EBITDA 370.87138.52149.97159.99174.08206.34202.47198.67194.94191.28
EBIT 313.8172.4172.8778.9595.89125.08122.73120.43118.17115.95
Tax Rate 40.39%-99.23%19.33%-43.17%3.93%-15.75%-15.75%-15.75%-15.75%-15.75%
EBIAT 187.06144.2558.79113.0392.12144.78142.06139.39136.78134.21
Depreciation 57.0566.1177.0981.0478.1981.2679.7478.2476.7775.33
Accounts Receivable -181.266.76-58.14-1.820.031.661.621.591.56
Inventories ----------
Accounts Payable -9.11-5.97-2.41-3.827.18-0.27-0.26-0.26-0.25
Capital Expenditure -37-36.90-37.99-42.41-38.28-43.14-42.33-41.53-40.75-39.99
UFCF 207.11363.8398.6891.11126.39190.11180.86177.46174.13170.87
WACC
PV UFCF 175.44154.03139.48126.30114.37
SUM PV UFCF 709.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.36
Free cash flow (t + 1) 174.28
Terminal Value 2,740.31
Present Value of Terminal Value 1,834.23

Intrinsic Value

Enterprise Value 2,543.85
Net Debt -283.54
Equity Value 2,827.39
Shares Outstanding 31.25
Equity Value Per Share 90.47