Discounted Cash Flow (DCF) Analysis Unlevered

Teradyne, Inc. (TER)

$103.71

+6.44 (+6.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 72.54 | 103.71 | 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	2,100.80	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