Discounted Cash Flow (DCF) Analysis Unlevered

Photronics, Inc. (PLAB)

$18.65

-0.04 (-0.21%)

All numbers are in Millions, Currency in USD

Stock DCF: 1.64 | 18.65 | overvalue

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	450.68	535.28	550.66	609.69	663.76	732.18	807.66	890.92	982.76	1,084.07
Revenue (%)
EBITDA	110.28	135.99	125.31	151.26	170.72	180.35	198.94	219.45	242.07	267.03
EBITDA (%)
EBIT	23.71	51.65	41.43	57.45	80.32	64.37	71	78.32	86.40	95.30
EBIT (%)
Depreciation	86.57	84.33	83.88	93.81	90.40	115.98	127.94	141.13	155.67	171.72
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	308.02	329.28	206.53	278.67	276.67	373.06	411.51	453.93	500.73	552.34
Total Cash (%)
Account Receivables	105.32	120.51	134.45	157.32	208.52	186.73	205.98	227.22	250.64	276.48
Account Receivables (%)
Inventories	23.70	29.18	48.16	57.27	55.25	54.43	60.05	66.24	73.06	80.59
Inventories (%)
Accounts Payable	50.83	89.15	91.38	75.38	81.53	101.30	111.74	123.26	135.97	149.98
Accounts Payable (%)
Capital Expenditure	-92.80	-92.80	-178.47	-70.97	-109.27	-144.15	-159.02	-175.41	-193.49	-213.43
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 18.65
Beta	1.125
Diluted Shares Outstanding	62
Cost of Debt
Tax Rate	45.64
After-tax Cost of Debt	0.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.015
Total Debt	113.97
Total Equity	1,156.28
Total Capital	1,270.25
Debt Weighting	8.97
Equity Weighting	91.03
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	450.68	535.28	550.66	609.69	663.76	732.18	807.66	890.92	982.76	1,084.07
EBITDA	110.28	135.99	125.31	151.26	170.72	180.35	198.94	219.45	242.07	267.03
EBIT	23.71	51.65	41.43	57.45	80.32	64.37	71	78.32	86.40	95.30
Tax Rate	50.57%	38.67%	41.24%	45.10%	45.64%	44.24%	44.24%	44.24%	44.24%	44.24%
EBIAT	11.72	31.68	24.34	31.54	43.66	35.89	39.59	43.67	48.17	53.14
Depreciation	86.57	84.33	83.88	93.81	90.40	115.98	127.94	141.13	155.67	171.72
Accounts Receivable	-	-15.19	-13.94	-22.87	-51.20	21.78	-19.25	-21.23	-23.42	-25.84
Inventories	-	-5.48	-18.98	-9.11	2.02	0.81	-5.61	-6.19	-6.83	-7.53
Accounts Payable	-	38.31	2.23	-16	6.16	19.76	10.44	11.52	12.71	14.02
Capital Expenditure	-92.80	-92.80	-178.47	-70.97	-109.27	-144.15	-159.02	-175.41	-193.49	-213.43
UFCF	5.49	40.85	-100.93	6.40	-18.23	50.08	-5.91	-6.51	-7.19	-7.93
WACC
PV UFCF						46.25	-5.04	-5.13	-5.23	-5.33
SUM PV UFCF										25.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.28
Free cash flow (t + 1)	-8.09
Terminal Value	-128.75
Present Value of Terminal Value	-86.50

Intrinsic Value

Enterprise Value	-60.97
Net Debt	-162.70
Equity Value	101.73
Shares Outstanding	62
Equity Value Per Share	1.64