Discounted Cash Flow (DCF) Analysis Unlevered

Sensata Technologies Holding plc (ST)

$37.2

+1.03 (+2.85%)

All numbers are in Millions, Currency in USD

Stock DCF: 67.17 | 37.2 | 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	3,521.63	3,450.63	3,045.58	3,820.81	4,029.26	4,202.07	4,382.29	4,570.24	4,766.26	4,970.68
Revenue (%)
EBITDA	877.58	922.75	625.72	922.21	789.79	974.41	1,016.20	1,059.79	1,105.24	1,152.64
EBITDA (%)
EBIT	632.24	664	370.49	663.12	508.82	666.82	695.42	725.25	756.35	788.79
EBIT (%)
Depreciation	245.34	258.75	255.23	259.09	280.97	307.59	320.78	334.54	348.89	363.85
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	729.83	774.12	1,861.98	1,708.96	1,225.52	1,508.03	1,572.71	1,640.16	1,710.50	1,783.86
Total Cash (%)
Account Receivables	581.77	557.87	576.65	653.44	742.38	732.40	763.82	796.58	830.74	866.37
Account Receivables (%)
Inventories	492.32	506.68	451	588.23	644.87	629.24	656.22	684.37	713.72	744.33
Inventories (%)
Accounts Payable	379.82	376.97	393.91	459.09	531.57	503.01	524.58	547.08	570.54	595.01
Accounts Payable (%)
Capital Expenditure	-159.79	-161.26	-106.72	-144.40	-150.06	-169.92	-177.21	-184.81	-192.73	-201
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 37.2
Beta	1.313
Diluted Shares Outstanding	155.93
Cost of Debt
Tax Rate	21.68
After-tax Cost of Debt	3.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.839
Total Debt	4,240.14
Total Equity	5,800.48
Total Capital	10,040.63
Debt Weighting	42.23
Equity Weighting	57.77
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	3,521.63	3,450.63	3,045.58	3,820.81	4,029.26	4,202.07	4,382.29	4,570.24	4,766.26	4,970.68
EBITDA	877.58	922.75	625.72	922.21	789.79	974.41	1,016.20	1,059.79	1,105.24	1,152.64
EBIT	632.24	664	370.49	663.12	508.82	666.82	695.42	725.25	756.35	788.79
Tax Rate	-13.80%	27.59%	0.82%	12.16%	21.68%	9.69%	9.69%	9.69%	9.69%	9.69%
EBIAT	719.46	480.82	367.46	582.48	398.49	602.20	628.03	654.97	683.06	712.35
Depreciation	245.34	258.75	255.23	259.09	280.97	307.59	320.78	334.54	348.89	363.85
Accounts Receivable	-	23.90	-18.77	-76.79	-88.94	9.98	-31.41	-32.76	-34.16	-35.63
Inventories	-	-14.36	55.67	-137.23	-56.64	15.64	-26.99	-28.14	-29.35	-30.61
Accounts Payable	-	-2.86	16.94	65.19	72.48	-28.57	21.57	22.50	23.46	24.47
Capital Expenditure	-159.79	-161.26	-106.72	-144.40	-150.06	-169.92	-177.21	-184.81	-192.73	-201
UFCF	805.01	584.99	569.81	548.33	456.29	736.92	734.78	766.30	799.16	833.44
WACC
PV UFCF						684.49	633.94	614.09	594.86	576.24
SUM PV UFCF										3,103.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.66
Free cash flow (t + 1)	850.10
Terminal Value	15,019.51
Present Value of Terminal Value	10,384.46

Intrinsic Value

Enterprise Value	13,488.08
Net Debt	3,014.62
Equity Value	10,473.46
Shares Outstanding	155.93
Equity Value Per Share	67.17