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 2,100.802,294.963,121.473,702.883,155.043,542.233,976.934,464.975,012.905,628.08
Revenue (%)
EBITDA 612.29669.571,051.941,304.26959.511,116.911,253.971,407.861,580.631,774.60
EBITDA (%)
EBIT 499.07548.92925.201,178.77848.83963.861,082.141,214.941,364.031,531.43
EBIT (%)
Depreciation 113.22120.66126.74125.49110.68153.05171.84192.92216.60243.18
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 1,116.85911.231,436.401,366.43894.381,446.181,623.661,822.912,046.622,297.78
Total Cash (%)
Account Receivables 291.27362.37497.51550.75491.15538.65604.75678.97762.29855.84
Account Receivables (%)
Inventories 153.54196.69222.19243.33325.02282.46317.12356.04399.73448.79
Inventories (%)
Accounts Payable 100.69126.62133.66153.13139.72164.05184.18206.78232.16260.65
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 2,100.802,294.963,121.473,702.883,155.043,542.233,976.934,464.975,012.905,628.08
EBITDA 612.29669.571,051.941,304.26959.511,116.911,253.971,407.861,580.631,774.60
EBIT 499.07548.92925.201,178.77848.83963.861,082.141,214.941,364.031,531.43
Tax Rate 3.42%11.09%12.97%12.61%14.86%10.99%10.99%10.99%10.99%10.99%
EBIAT 481.98488.05805.191,030.16722.69857.92963.211,081.411,214.121,363.11
Depreciation 113.22120.66126.74125.49110.68153.05171.84192.92216.60243.18
Accounts Receivable --71.10-135.14-53.2459.60-47.51-66.10-74.21-83.32-93.55
Inventories --43.15-25.50-21.14-81.6942.56-34.66-38.92-43.69-49.05
Accounts Payable -25.937.0519.47-13.4124.3320.1322.6025.3828.49
Capital Expenditure -114.38-134.64-184.98-132.47-163.25-184.12-206.71-232.08-260.56-292.54
UFCF 480.82385.74593.37968.26634.62846.24847.69951.721,068.521,199.64
WACC
PV UFCF 762.17687.64695.33703.10710.97
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