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Discounted Cash Flow (DCF) Analysis Unlevered


Marvell Technology Group Ltd.

Marvell Technology Group Ltd. (MRVL)

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 3,168.633,404.383,637.242,602.442,300.822,408.962,865.452,855.432,845.432,835.472,825.55
Revenue (%)
EBITDA 454.06453.12555.77-687.83212.60626.57363.05262.70261.78260.86259.95
EBITDA (%)
EBIT 310.21306.39431.01-800.7794.10539.6155.88115.36114.96114.55114.15
EBIT (%)
Depreciation 143.86146.73124.76112.95118.4986.96307.18147.34146.82146.31145.80
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 1,918.921,969.432,529.702,282.861,668.321,841.17582.551,814.911,808.561,802.231,795.92
Total Cash (%)
Account Receivables 330.17453.46420.83323.22335.46280.40493.14371.78370.48369.18367.89
Account Receivables (%)
Inventories 250.32347.93308.07200.91170.95170.07275.94238.43237.59236.76235.93
Inventories (%)
Accounts Payable 286.44316.27282.98180.35143.57145.26185.39211.30210.56209.82209.09
Accounts Payable (%)
Capital Expenditure -103.30-84.09-79.29-45.80-54.76-32.52-43.84-60.82-60.61-60.40-60.18
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 25.86
Diluted Shares Outstanding 591.23
Cost of Debt
Tax Rate -3,753.97
After-tax Cost of Debt 187.75
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.78
Total Debt 1,732.70
Total Equity 15,289.26
Total Capital 17,021.96
Debt Weighting 10.18
Equity Weighting 89.82
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 3,168.633,404.383,637.242,602.442,300.822,408.962,865.452,855.432,845.432,835.472,825.55
EBITDA 454.06453.12555.77-687.83212.60626.57363.05262.70261.78260.86259.95
EBIT 310.21306.39431.01-800.7794.10539.6155.88115.36114.96114.55114.15
Tax Rate 1.16%-2.96%-0.95%-1.34%77.44%3.35%-3,753.97%-525.32%-525.32%-525.32%-525.32%
EBIAT 306.60315.46435.09-811.4921.23521.522,153.46721.37718.84716.33713.82
Depreciation 143.86146.73124.76112.95118.4986.96307.18147.34146.82146.31145.80
Accounts Receivable --123.2932.6397.60-12.2455.06-212.74121.371.301.301.29
Inventories --97.6139.85107.1729.960.88-105.8737.520.830.830.83
Accounts Payable -29.82-33.29-102.63-36.781.6940.1325.91-0.74-0.74-0.73
Capital Expenditure --19.21-4.80-33.498.96-22.2411.3216.98-0.21-0.21-0.21
UFCF 450.46251.91594.25-629.89129.62643.872,193.481,070.48866.85863.82860.79
WACC
PV UFCF 640.29401.00309.05238.18
SUM PV UFCF 1,425.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 29.30
Free cash flow (t + 1) 895.22
Terminal Value 3,538.44
Present Value of Terminal Value 979.08

Intrinsic Value

Enterprise Value 2,404.30
Net Debt 1,150.15
Equity Value 1,254.15
Shares Outstanding 591.23
Equity Value Per Share 2.12