Discounted Cash Flow (DCF) Analysis Unlevered
Teradyne, Inc. (TER)
$103.71
+6.44 (+6.62%)
All numbers are in Millions, Currency in USD
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 | 2,100.80 | 2,294.96 | 3,121.47 | 3,702.88 | 3,155.04 | 3,542.23 | 3,976.93 | 4,464.97 | 5,012.90 | 5,628.08 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 612.29 | 669.57 | 1,051.94 | 1,304.26 | 959.51 | 1,116.91 | 1,253.97 | 1,407.86 | 1,580.63 | 1,774.60 |
EBITDA (%) | ||||||||||
EBIT | 499.07 | 548.92 | 925.20 | 1,178.77 | 848.83 | 963.86 | 1,082.14 | 1,214.94 | 1,364.03 | 1,531.43 |
EBIT (%) | ||||||||||
Depreciation | 113.22 | 120.66 | 126.74 | 125.49 | 110.68 | 153.05 | 171.84 | 192.92 | 216.60 | 243.18 |
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 | 1,116.85 | 911.23 | 1,436.40 | 1,366.43 | 894.38 | 1,446.18 | 1,623.66 | 1,822.91 | 2,046.62 | 2,297.78 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 291.27 | 362.37 | 497.51 | 550.75 | 491.15 | 538.65 | 604.75 | 678.97 | 762.29 | 855.84 |
Account Receivables (%) | ||||||||||
Inventories | 153.54 | 196.69 | 222.19 | 243.33 | 325.02 | 282.46 | 317.12 | 356.04 | 399.73 | 448.79 |
Inventories (%) | ||||||||||
Accounts Payable | 100.69 | 126.62 | 133.66 | 153.13 | 139.72 | 164.05 | 184.18 | 206.78 | 232.16 | 260.65 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -114.38 | -134.64 | -184.98 | -132.47 | -163.25 | -184.12 | -206.71 | -232.08 | -260.56 | -292.54 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 103.71 |
---|---|
Beta | 1.539 |
Diluted Shares Outstanding | 169.73 |
Cost of Debt | |
Tax Rate | 14.86 |
After-tax Cost of Debt | 5.41% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 11.074 |
Total Debt | 132.88 |
Total Equity | 17,603.11 |
Total Capital | 17,736 |
Debt Weighting | 0.75 |
Equity Weighting | 99.25 |
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 | 2,100.80 | 2,294.96 | 3,121.47 | 3,702.88 | 3,155.04 | 3,542.23 | 3,976.93 | 4,464.97 | 5,012.90 | 5,628.08 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 612.29 | 669.57 | 1,051.94 | 1,304.26 | 959.51 | 1,116.91 | 1,253.97 | 1,407.86 | 1,580.63 | 1,774.60 |
EBIT | 499.07 | 548.92 | 925.20 | 1,178.77 | 848.83 | 963.86 | 1,082.14 | 1,214.94 | 1,364.03 | 1,531.43 |
Tax Rate | 3.42% | 11.09% | 12.97% | 12.61% | 14.86% | 10.99% | 10.99% | 10.99% | 10.99% | 10.99% |
EBIAT | 481.98 | 488.05 | 805.19 | 1,030.16 | 722.69 | 857.92 | 963.21 | 1,081.41 | 1,214.12 | 1,363.11 |
Depreciation | 113.22 | 120.66 | 126.74 | 125.49 | 110.68 | 153.05 | 171.84 | 192.92 | 216.60 | 243.18 |
Accounts Receivable | - | -71.10 | -135.14 | -53.24 | 59.60 | -47.51 | -66.10 | -74.21 | -83.32 | -93.55 |
Inventories | - | -43.15 | -25.50 | -21.14 | -81.69 | 42.56 | -34.66 | -38.92 | -43.69 | -49.05 |
Accounts Payable | - | 25.93 | 7.05 | 19.47 | -13.41 | 24.33 | 20.13 | 22.60 | 25.38 | 28.49 |
Capital Expenditure | -114.38 | -134.64 | -184.98 | -132.47 | -163.25 | -184.12 | -206.71 | -232.08 | -260.56 | -292.54 |
UFCF | 480.82 | 385.74 | 593.37 | 968.26 | 634.62 | 846.24 | 847.69 | 951.72 | 1,068.52 | 1,199.64 |
WACC | ||||||||||
PV UFCF | 762.17 | 687.64 | 695.33 | 703.10 | 710.97 | |||||
SUM PV UFCF | 3,559.20 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 11.03 |
Free cash flow (t + 1) | 1,223.64 |
Terminal Value | 13,550.79 |
Present Value of Terminal Value | 8,030.87 |
Intrinsic Value
Enterprise Value | 11,590.08 |
---|---|
Net Debt | -721.89 |
Equity Value | 12,311.97 |
Shares Outstanding | 169.73 |
Equity Value Per Share | 72.54 |