Discounted Cash Flow (DCF) Analysis Unlevered
InterDigital, Inc. (IDCC)
$69.84
-1.45 (-2.03%)
All numbers are in Millions, Currency in USD
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 | 532.94 | 307.40 | 318.92 | 358.99 | 425.41 | 417.43 | 409.59 | 401.90 | 394.36 | 386.96 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 370.87 | 138.52 | 149.97 | 159.99 | 174.08 | 206.34 | 202.47 | 198.67 | 194.94 | 191.28 |
EBITDA (%) | ||||||||||
EBIT | 313.81 | 72.41 | 72.87 | 78.95 | 95.89 | 125.08 | 122.73 | 120.43 | 118.17 | 115.95 |
EBIT (%) | ||||||||||
Depreciation | 57.05 | 66.11 | 77.09 | 81.04 | 78.19 | 81.26 | 79.74 | 78.24 | 76.77 | 75.33 |
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 | 1,157.99 | 945.78 | 924.69 | 926.65 | 941.63 | 1,080.60 | 1,060.32 | 1,040.42 | 1,020.90 | 1,001.74 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 216.29 | 35.03 | 28.27 | 86.42 | 88.24 | 88.21 | 86.56 | 84.93 | 83.34 | 81.77 |
Account Receivables (%) | ||||||||||
Inventories | - | - | - | - | - | - | - | - | - | - |
Inventories (%) | ||||||||||
Accounts Payable | 10.26 | 19.37 | 13.39 | 10.98 | 7.16 | 14.33 | 14.06 | 13.80 | 13.54 | 13.28 |
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 | 532.94 | 307.40 | 318.92 | 358.99 | 425.41 | 417.43 | 409.59 | 401.90 | 394.36 | 386.96 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 370.87 | 138.52 | 149.97 | 159.99 | 174.08 | 206.34 | 202.47 | 198.67 | 194.94 | 191.28 |
EBIT | 313.81 | 72.41 | 72.87 | 78.95 | 95.89 | 125.08 | 122.73 | 120.43 | 118.17 | 115.95 |
Tax Rate | 40.39% | -99.23% | 19.33% | -43.17% | 3.93% | -15.75% | -15.75% | -15.75% | -15.75% | -15.75% |
EBIAT | 187.06 | 144.25 | 58.79 | 113.03 | 92.12 | 144.78 | 142.06 | 139.39 | 136.78 | 134.21 |
Depreciation | 57.05 | 66.11 | 77.09 | 81.04 | 78.19 | 81.26 | 79.74 | 78.24 | 76.77 | 75.33 |
Accounts Receivable | - | 181.26 | 6.76 | -58.14 | -1.82 | 0.03 | 1.66 | 1.62 | 1.59 | 1.56 |
Inventories | - | - | - | - | - | - | - | - | - | - |
Accounts Payable | - | 9.11 | -5.97 | -2.41 | -3.82 | 7.18 | -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 | 207.11 | 363.83 | 98.68 | 91.11 | 126.39 | 190.11 | 180.86 | 177.46 | 174.13 | 170.87 |
WACC | ||||||||||
PV UFCF | 175.44 | 154.03 | 139.48 | 126.30 | 114.37 | |||||
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 |