Discounted Cash Flow (DCF) Analysis Unlevered

Qorvo, Inc. (QRVO)

$107.05

-1.51 (-1.39%)

All numbers are in Millions, Currency in USD

Stock DCF: 101.10 | 107.05 | 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	2,973.54	3,090.32	3,239.14	4,015.31	4,645.71	5,207.91	5,838.13	6,544.63	7,336.61	8,224.44
Revenue (%)
EBITDA	790.91	798.85	924.41	1,338.68	1,605.83	1,550.83	1,738.51	1,948.89	2,184.73	2,449.11
EBITDA (%)
EBIT	76.69	135.76	455.48	882.58	1,244.41	727.03	815.01	913.64	1,024.20	1,148.14
EBIT (%)
Depreciation	714.22	663.10	468.93	456.10	361.41	823.81	923.50	1,035.25	1,160.53	1,300.97
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	926.04	711.04	714.94	1,397.88	972.59	1,374.60	1,540.94	1,727.41	1,936.45	2,170.79
Total Cash (%)
Account Receivables	390.75	400.11	382.19	484.76	601	655.12	734.40	823.27	922.89	1,034.58
Account Receivables (%)
Inventories	472.29	511.79	517.20	507.79	755.75	805.41	902.87	1,012.13	1,134.61	1,271.92
Inventories (%)
Accounts Payable	213.19	233.31	246.95	313.87	327.91	387.66	434.57	487.16	546.12	612.20
Accounts Payable (%)
Capital Expenditure	-269.84	-220.94	-164.10	-186.96	-213.47	-318.11	-356.61	-399.76	-448.14	-502.37
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 107.05
Beta	1.421
Diluted Shares Outstanding	111.55
Cost of Debt
Tax Rate	12.51
After-tax Cost of Debt	2.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.348
Total Debt	2,047.10
Total Equity	11,941
Total Capital	13,988.10
Debt Weighting	14.63
Equity Weighting	85.37
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	2,973.54	3,090.32	3,239.14	4,015.31	4,645.71	5,207.91	5,838.13	6,544.63	7,336.61	8,224.44
EBITDA	790.91	798.85	924.41	1,338.68	1,605.83	1,550.83	1,738.51	1,948.89	2,184.73	2,449.11
EBIT	76.69	135.76	455.48	882.58	1,244.41	727.03	815.01	913.64	1,024.20	1,148.14
Tax Rate	334.98%	-45.03%	15.38%	9.14%	12.51%	65.40%	65.40%	65.40%	65.40%	65.40%
EBIAT	-180.22	196.88	385.43	801.94	1,088.76	251.58	282.03	316.15	354.41	397.30
Depreciation	714.22	663.10	468.93	456.10	361.41	823.81	923.50	1,035.25	1,160.53	1,300.97
Accounts Receivable	-	-9.35	17.92	-102.57	-116.25	-54.12	-79.28	-88.87	-99.63	-111.68
Inventories	-	-39.50	-5.41	9.41	-247.96	-49.66	-97.46	-109.26	-122.48	-137.30
Accounts Payable	-	20.11	13.65	66.91	14.05	59.75	46.91	52.59	58.95	66.09
Capital Expenditure	-269.83	-220.94	-164.10	-186.96	-213.47	-318.11	-356.61	-399.76	-448.14	-502.37
UFCF	264.16	610.30	716.42	1,044.84	886.55	713.25	719.09	806.11	903.65	1,013.01
WACC
PV UFCF						652.98	602.69	618.54	634.80	651.48
SUM PV UFCF										3,160.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.23
Free cash flow (t + 1)	1,033.27
Terminal Value	14,291.41
Present Value of Terminal Value	9,191.06

Intrinsic Value

Enterprise Value	12,351.55
Net Debt	1,074.51
Equity Value	11,277.04
Shares Outstanding	111.55
Equity Value Per Share	101.10