Discounted Cash Flow (DCF) Analysis Unlevered

Microchip Technology Incorporated (MCHP)

$75.67

-0.95 (-1.24%)
All numbers are in Millions, Currency in USD
Stock DCF: 95.79 | 75.67 | undervalue

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 3,980.805,349.505,274.205,438.406,820.907,869.779,079.9310,476.1812,087.1413,945.81
Revenue (%)
EBITDA 1,552.201,583.801,863.301,849.702,871.502,833.713,269.463,772.214,352.285,021.54
EBITDA (%)
EBIT 936.30707.40647.70696.401,7281,371.921,582.881,826.292,107.122,431.14
EBIT (%)
Depreciation 615.90876.401,215.601,153.301,143.501,461.791,686.581,945.932,245.162,590.40
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 2,196.60430.90403282319.401,270.871,466.301,691.771,951.922,252.08
Total Cash (%)
Account Receivables 563.70880.60934997.701,072.601,296.961,496.401,726.501,991.992,298.31
Account Receivables (%)
Inventories 476.20711.70685.70665854.40991.931,144.461,320.451,523.501,757.77
Inventories (%)
Accounts Payable 144.10226.40246.80292.40344.70361.41416.98481.10555.08640.44
Accounts Payable (%)
Capital Expenditure -206.80-228.90-67.60-92.60-370.10-281.49-324.78-374.72-432.34-498.82
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 75.67
Beta 1.509
Diluted Shares Outstanding 565.90
Cost of Debt
Tax Rate 13.29
After-tax Cost of Debt 2.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.815
Total Debt 7,850.10
Total Equity 42,821.65
Total Capital 50,671.75
Debt Weighting 15.49
Equity Weighting 84.51
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 3,980.805,349.505,274.205,438.406,820.907,869.779,079.9310,476.1812,087.1413,945.81
EBITDA 1,552.201,583.801,863.301,849.702,871.502,833.713,269.463,772.214,352.285,021.54
EBIT 936.30707.40647.70696.401,7281,371.921,582.881,826.292,107.122,431.14
Tax Rate 65.36%-74.03%-279.39%-2.92%13.29%-55.54%-55.54%-55.54%-55.54%-55.54%
EBIAT 324.331,231.122,457.30716.711,498.382,133.852,461.982,840.573,277.373,781.34
Depreciation 615.90876.401,215.601,153.301,143.501,461.791,686.581,945.932,245.162,590.40
Accounts Receivable --316.90-53.40-63.70-74.90-224.36-199.44-230.11-265.49-306.32
Inventories --235.502620.70-189.40-137.53-152.53-175.99-203.05-234.27
Accounts Payable -82.3020.4045.6052.3016.7155.5764.1273.9885.36
Capital Expenditure -206.80-228.90-67.60-92.60-370.10-281.49-324.78-374.72-432.34-498.82
UFCF 733.431,408.523,598.301,780.012,059.782,968.973,527.394,069.814,695.635,417.70
WACC
PV UFCF 2,709.902,938.663,094.693,259.013,432.06
SUM PV UFCF 15,434.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.56
Free cash flow (t + 1) 5,526.05
Terminal Value 73,095.91
Present Value of Terminal Value 46,305.54

Intrinsic Value

Enterprise Value 61,739.87
Net Debt 7,532.70
Equity Value 54,207.17
Shares Outstanding 565.90
Equity Value Per Share 95.79