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Discounted Cash Flow (DCF) Analysis Unlevered


Flex Ltd.

Flex Ltd. (FLEX)

Technology

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 23,569.4726,107.9126,147.0724,418.7523,862.0025,439.2826,207.5526,718.5927,239.6027,770.7828,312.31
Revenue (%)
EBITDA 926.28926.831,262.901,054.891,080.951,198.191,129.551,151.571,174.031,196.921,220.26
EBITDA (%)
EBIT 360.61462.11721.66539.65472.47643.61364.28539.72550.24560.97571.91
EBIT (%)
Depreciation 565.67464.72541.24515.24608.48554.58765.26611.86623.79635.95648.35
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 1,586.231,592.581,628.961,606.751,830.221,472.931,695.631,739.381,773.301,807.881,843.13
Total Cash (%)
Account Receivables 2,111.822,696.952,337.552,043.852,192.922,518.492,612.892,506.202,555.072,604.902,655.69
Account Receivables (%)
Inventories 2,722.273,600.283,488.023,491.883,395.563,800.633,724.093,676.483,748.173,821.263,895.77
Inventories (%)
Accounts Payable 3,705.124,749.034,560.054,248.864,486.065,123.475,147.164,860.114,954.885,051.505,150.01
Accounts Payable (%)
Capital Expenditure -436.04-514.33-240.55-498.14-489.17-516.42-631.60-507.65-517.55-527.64-537.93
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 10.99
Diluted Shares Outstanding 526.52
Cost of Debt
Tax Rate 48.72
After-tax Cost of Debt -2.39
Risk-Free Rate
Market Risk Premium
Cost of Equity 16.80
Total Debt 2,421.90
Total Equity 5,786.44
Total Capital 8,208.35
Debt Weighting 29.51
Equity Weighting 70.49
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 23,569.4726,107.9126,147.0724,418.7523,862.0025,439.2826,207.5526,718.5927,239.6027,770.7828,312.31
EBITDA 926.28926.831,262.901,054.891,080.951,198.191,129.551,151.571,174.031,196.921,220.26
EBIT 360.61462.11721.66539.65472.47643.61364.28539.72550.24560.97571.91
Tax Rate 8.67%8.71%10.42%2.33%13.83%17.73%48.72%15.77%15.77%15.77%15.77%
EBIAT 329.33421.88646.49527.08407.13529.50186.81454.59463.46472.50481.71
Depreciation 565.67464.72541.24515.24608.48554.58765.26611.86623.79635.95648.35
Accounts Receivable --585.12359.40293.70-149.07-325.57-94.40106.69-48.87-49.82-50.80
Inventories --878.01112.26-3.8696.32-405.0776.5447.61-71.69-73.09-74.51
Accounts Payable -1,043.91-188.98-311.19237.19637.4123.69-287.0594.7796.6298.50
Capital Expenditure -78.29-273.77257.59-8.9727.25115.18-123.959.9010.0910.29
UFCF 895.00545.671,196.641,278.561,191.081,018.101,073.08809.751,071.351,092.251,113.54
WACC
PV UFCF 638.67750.44679.46615.20
SUM PV UFCF 5,800.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.60
Free cash flow (t + 1) 1,158.09
Terminal Value 13,466.12
Present Value of Terminal Value 7,439.61

Intrinsic Value

Enterprise Value 13,240.36
Net Debt 726.28
Equity Value 12,514.08
Shares Outstanding 526.52
Equity Value Per Share 23.77