Discounted Cash Flow (DCF) Analysis Unlevered

II-VI Incorporated (IIVI)

$41.95

+0.30 (+0.72%)
All numbers are in Millions, Currency in USD
Stock DCF: -17.69 | 41.95 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,158.791,362.502,380.073,105.893,316.624,390.735,812.727,695.2210,187.3913,486.67
Revenue (%)
EBITDA 221.32243.60246.36682.56689.84791.251,047.501,386.741,835.852,430.41
EBITDA (%)
EBIT 140.55151.2325.48412.49403.06436.72578.16765.401,013.291,341.45
EBIT (%)
Depreciation 80.7792.36220.88270.07286.78354.52469.34621.34822.571,088.96
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 247.04204.87493.051,591.891,592.371,372.861,817.482,406.093,185.324,216.92
Total Cash (%)
Account Receivables 215.03269.64598.12658.96700.33929.161,230.081,628.462,155.852,854.04
Account Receivables (%)
Inventories 248.27296.28619.81695.83902.561,043.491,381.431,828.822,421.113,205.21
Inventories (%)
Accounts Payable 89.77104.46268.77294.49434.92432.94573.15758.771,004.511,329.83
Accounts Payable (%)
Capital Expenditure -153.44-137.12-140.63-146.34-314.33-381.14-504.58-667.99-884.32-1,170.72
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 41.95
Beta 1.449
Diluted Shares Outstanding 115.03
Cost of Debt
Tax Rate 16.70
After-tax Cost of Debt 4.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.403
Total Debt 2,438.21
Total Equity 4,825.68
Total Capital 7,263.89
Debt Weighting 33.57
Equity Weighting 66.43
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 1,158.791,362.502,380.073,105.893,316.624,390.735,812.727,695.2210,187.3913,486.67
EBITDA 221.32243.60246.36682.56689.84791.251,047.501,386.741,835.852,430.41
EBIT 140.55151.2325.48412.49403.06436.72578.16765.401,013.291,341.45
Tax Rate 27.98%16.53%-4.85%15.61%16.70%14.39%14.39%14.39%14.39%14.39%
EBIAT 101.22126.2326.72348.10335.77373.86494.94655.23867.441,148.36
Depreciation 80.7792.36220.88270.07286.78354.52469.34621.34822.571,088.96
Accounts Receivable --54.61-328.48-60.84-41.37-228.83-300.92-398.37-527.39-698.19
Inventories --48.01-323.53-76.02-206.73-140.93-337.94-447.39-592.28-784.10
Accounts Payable -14.69164.3125.71140.43-1.98140.21185.62245.74325.32
Capital Expenditure -153.44-137.12-140.63-146.34-314.33-381.14-504.58-667.99-884.32-1,170.72
UFCF 28.55-6.47-380.73360.69200.55-24.49-38.95-51.56-68.26-90.36
WACC
PV UFCF -22.62-33.20-40.59-49.62-60.65
SUM PV UFCF -206.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.30
Free cash flow (t + 1) -92.17
Terminal Value -1,462.98
Present Value of Terminal Value -981.97

Intrinsic Value

Enterprise Value -1,188.64
Net Debt 845.84
Equity Value -2,034.49
Shares Outstanding 115.03
Equity Value Per Share -17.69