Discounted Cash Flow (DCF) Analysis Unlevered

Rambus Inc. (RMBS)

$56.31

+1.25 (+2.27%)
All numbers are in Millions, Currency in USD
Stock DCF: -34.93 | 56.31 | 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 231.20224.03242.75328.30454.79544.64652.25781.11935.431,120.24
Revenue (%)
EBITDA -52.13-60.90-25.9440.8989.50-30.81-36.90-44.19-52.92-63.38
EBITDA (%)
EBIT -92.21-101.47-73.31-3.3942.37-116.66-139.70-167.30-200.36-239.94
EBIT (%)
Depreciation 40.0940.5647.3644.2847.1385.84102.80123.11147.44176.56
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 277.76407.66502.65485.61313.23790.79947.021,134.121,358.181,626.51
Total Cash (%)
Account Receivables 227.48228.41163.80179.67181.07394.72472.70566.09677.93811.86
Account Receivables (%)
Inventories 6.7710.0914.478.4820.9022.4126.8332.1338.4846.09
Inventories (%)
Accounts Payable 7.399.558.9911.2824.8121.8526.1631.3337.5244.94
Accounts Payable (%)
Capital Expenditure -11.11-6.47-29.73-13.79-20.48-31.20-37.37-44.75-53.59-64.18
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 56.31
Beta 1.217
Diluted Shares Outstanding 109.47
Cost of Debt
Tax Rate -82.88
After-tax Cost of Debt 4.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.047
Total Debt 44.48
Total Equity 6,164.37
Total Capital 6,208.85
Debt Weighting 0.72
Equity Weighting 99.28
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 231.20224.03242.75328.30454.79544.64652.25781.11935.431,120.24
EBITDA -52.13-60.90-25.9440.8989.50-30.81-36.90-44.19-52.92-63.38
EBIT -92.21-101.47-73.31-3.3942.37-116.66-139.70-167.30-200.36-239.94
Tax Rate -123.65%-3.91%-10.04%21.27%-82.88%-39.84%-39.84%-39.84%-39.84%-39.84%
EBIAT -206.24-105.44-80.66-2.6777.49-163.13-195.36-233.96-280.18-335.53
Depreciation 40.0940.5647.3644.2847.1385.84102.80123.11147.44176.56
Accounts Receivable --0.9364.60-15.87-1.39-213.65-77.98-93.39-111.84-133.94
Inventories --3.31-4.385.98-12.42-1.51-4.43-5.30-6.35-7.60
Accounts Payable -2.16-0.562.2913.54-2.974.325.176.197.41
Capital Expenditure -11.11-6.47-29.73-13.79-20.48-31.20-37.37-44.75-53.59-64.18
UFCF -177.26-73.43-3.3620.21103.86-326.62-208.02-249.12-298.33-357.28
WACC
PV UFCF -296.90-171.89-187.11-203.69-221.74
SUM PV UFCF -1,081.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.01
Free cash flow (t + 1) -364.42
Terminal Value -4,549.58
Present Value of Terminal Value -2,823.64

Intrinsic Value

Enterprise Value -3,904.97
Net Debt -80.85
Equity Value -3,824.12
Shares Outstanding 109.47
Equity Value Per Share -34.93