Discounted Cash Flow (DCF) Analysis Unlevered

Skyworks Solutions, Inc. (SWKS)

$114.94

-1.42 (-1.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 156.39 | 114.94 | 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	3,868	3,376.80	3,355.70	5,109.10	5,485.50	6,120.37	6,828.73	7,619.06	8,500.87	9,484.73
Revenue (%)
EBITDA	1,631.30	1,332.60	1,256	2,048.80	2,214.60	2,442.51	2,725.20	3,040.61	3,392.52	3,785.15
EBITDA (%)
EBIT	1,332.10	961	891.70	1,612.10	1,524.50	1,821.61	2,032.44	2,267.67	2,530.12	2,822.95
EBIT (%)
Depreciation	299.20	371.60	364.30	436.70	690.10	620.90	692.76	772.94	862.39	962.20
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	1,027.40	1,054.60	974.80	1,020.10	586.30	1,438.24	1,604.69	1,790.42	1,997.63	2,228.83
Total Cash (%)
Account Receivables	655.80	465.30	393.60	756.20	1,094	945.08	1,054.46	1,176.50	1,312.66	1,464.59
Account Receivables (%)
Inventories	490.20	609.70	806	885	1,212.10	1,152.66	1,286.07	1,434.91	1,600.99	1,786.28
Inventories (%)
Accounts Payable	229.90	190.50	226.90	236	274.20	342.31	381.92	426.13	475.45	530.47
Accounts Payable (%)
Capital Expenditure	-430.90	-423.40	-398.50	-652.10	-509.70	-705.18	-786.80	-877.86	-979.46	-1,092.82
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 114.94
Beta	1.290
Diluted Shares Outstanding	163.30
Cost of Debt
Tax Rate	13.64
After-tax Cost of Debt	1.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.467
Total Debt	2,414.50
Total Equity	18,769.70
Total Capital	21,184.20
Debt Weighting	11.40
Equity Weighting	88.60
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	3,868	3,376.80	3,355.70	5,109.10	5,485.50	6,120.37	6,828.73	7,619.06	8,500.87	9,484.73
EBITDA	1,631.30	1,332.60	1,256	2,048.80	2,214.60	2,442.51	2,725.20	3,040.61	3,392.52	3,785.15
EBIT	1,332.10	961	891.70	1,612.10	1,524.50	1,821.61	2,032.44	2,267.67	2,530.12	2,822.95
Tax Rate	31.06%	11.18%	8.62%	6.28%	13.64%	14.16%	14.16%	14.16%	14.16%	14.16%
EBIAT	918.40	853.60	814.80	1,510.86	1,316.57	1,563.76	1,744.75	1,946.68	2,171.98	2,423.36
Depreciation	299.20	371.60	364.30	436.70	690.10	620.90	692.76	772.94	862.39	962.20
Accounts Receivable	-	190.50	71.70	-362.60	-337.80	148.92	-109.38	-122.04	-136.16	-151.92
Inventories	-	-119.50	-196.30	-79	-327.10	59.44	-133.41	-148.85	-166.07	-185.29
Accounts Payable	-	-39.40	36.40	9.10	38.20	68.11	39.62	44.20	49.32	55.03
Capital Expenditure	-430.90	-423.40	-398.50	-652.10	-509.70	-705.18	-786.80	-877.86	-979.46	-1,092.82
UFCF	786.70	833.40	692.40	862.96	870.27	1,755.94	1,447.54	1,615.08	1,802	2,010.56
WACC
PV UFCF						1,617.19	1,227.81	1,261.66	1,296.45	1,332.19
SUM PV UFCF										6,735.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.58
Free cash flow (t + 1)	2,050.77
Terminal Value	31,166.69
Present Value of Terminal Value	20,651.02

Intrinsic Value

Enterprise Value	27,386.32
Net Debt	1,848.50
Equity Value	25,537.82
Shares Outstanding	163.30
Equity Value Per Share	156.39