Discounted Cash Flow (DCF) Analysis Unlevered

Micron Technology, Inc. (MU)

$50.1

+0.44 (+0.89%)
All numbers are in Millions, Currency in USD
Stock DCF: 63.85 | 50.1 | 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 20,32230,39123,40621,43527,70530,987.6134,659.1738,765.7443,358.8848,496.24
Revenue (%)
EBITDA 9,66519,40412,5688,81112,65215,610.0317,459.5819,528.2721,842.0624,430.01
EBITDA (%)
EBIT 5,80414,6457,1443,1616,4389,002.2410,068.8711,261.8712,596.2314,088.69
EBIT (%)
Depreciation 3,8614,7595,4245,6506,2146,607.797,390.718,266.399,245.8310,341.32
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 5,4286,8027,9558,1428,6339,434.1010,551.8911,802.1313,200.5014,764.55
Total Cash (%)
Account Receivables 3,7595,4783,1933,9125,3115,428.066,071.216,790.557,595.138,495.03
Account Receivables (%)
Inventories 3,1233,5955,1185,6074,4875,665.576,336.857,087.677,927.458,866.73
Inventories (%)
Accounts Payable 1,3331,6921,6772,1911,7442,219.222,482.162,776.263,105.203,473.12
Accounts Payable (%)
Capital Expenditure -4,734-8,879-9,780-8,223-10,030-10,465.16-11,705.12-13,091.99-14,643.19-16,378.18
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 50.1
Beta 1.302
Diluted Shares Outstanding 1,141
Cost of Debt
Tax Rate 5.74
After-tax Cost of Debt 2.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.843
Total Debt 7,280
Total Equity 57,164.10
Total Capital 64,444.10
Debt Weighting 11.30
Equity Weighting 88.70
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 20,32230,39123,40621,43527,70530,987.6134,659.1738,765.7443,358.8848,496.24
EBITDA 9,66519,40412,5688,81112,65215,610.0317,459.5819,528.2721,842.0624,430.01
EBIT 5,80414,6457,1443,1616,4389,002.2410,068.8711,261.8712,596.2314,088.69
Tax Rate 2.06%1.20%10.43%9.92%5.74%5.87%5.87%5.87%5.87%5.87%
EBIAT 5,684.4814,468.946,398.992,847.346,068.378,473.739,477.7410,600.7011,856.7213,261.56
Depreciation 3,8614,7595,4245,6506,2146,607.797,390.718,266.399,245.8310,341.32
Accounts Receivable --1,7192,285-719-1,399-117.06-643.14-719.34-804.58-899.90
Inventories --472-1,523-4891,120-1,178.57-671.28-750.82-839.78-939.28
Accounts Payable -359-15514-447475.22262.94294.10328.94367.92
Capital Expenditure -4,734-8,879-9,780-8,223-10,030-10,465.16-11,705.12-13,091.99-14,643.19-16,378.18
UFCF 4,811.488,516.942,789.99-419.661,526.373,795.944,111.854,599.045,143.955,753.43
WACC
PV UFCF 3,482.523,460.863,551.303,644.113,739.34
SUM PV UFCF 17,878.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.00
Free cash flow (t + 1) 5,868.50
Terminal Value 83,835.74
Present Value of Terminal Value 54,487.48

Intrinsic Value

Enterprise Value 72,365.61
Net Debt -483
Equity Value 72,848.61
Shares Outstanding 1,141
Equity Value Per Share 63.85