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Discounted Cash Flow (DCF) Analysis Unlevered


Micron Technology Inc.

Micron Technology Inc. (MU)

Technology

Operating Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 9,073.0016,357.7116,192.5012,398.6020,321.3030,390.5040,680.7354,455.2272,893.7697,575.59130,614.68
Revenue (%)
EBITDA 3,232.715,628.696,093.243,160.409,664.8119,404.3416,581.4622,195.9529,711.5039,771.8153,238.54
EBITDA (%)
EBIT 1,429.003,525.093,426.33181.025,803.7614,645.189,267.0712,404.9016,605.2022,227.7229,754.02
EBIT (%)
Depreciation 1,803.712,103.602,666.902,979.383,861.054,759.157,314.399,791.0513,106.3017,544.0923,484.52
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 3,657.334,534.363,520.254,397.785,427.826,801.3911,821.8215,824.6921,182.9328,355.4737,956.63
Total Cash (%)
Account Receivables 2,329.042,906.772,506.602,068.093,759.445,479.417,603.2310,177.6813,623.8418,236.8824,411.88
Account Receivables (%)
Inventories 2,649.322,455.292,339.822,888.873,123.383,595.207,399.829,905.4013,259.3717,749.0023,758.81
Inventories (%)
Accounts Payable 2,114.922,864.242,610.233,879.523,663.934,373.198,180.8910,950.9514,658.9419,622.4526,266.61
Accounts Payable (%)
Capital Expenditure -1,441.70-3,106.33-4,020.60-5,817.42-4,734.86-8,880.11-10,788.53-14,441.52-19,331.43-25,877.05-34,639.01
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 44.85
Diluted Shares Outstanding 1,229.00
Cost of Debt
Tax Rate 1.17
After-tax Cost of Debt -0.01
Risk-Free Rate
Market Risk Premium
Cost of Equity 17.19
Total Debt 3,780.00
Total Equity 55,120.65
Total Capital 58,900.65
Debt Weighting 6.42
Equity Weighting 93.58
Wacc

Build Up Free Cash

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 9,073.0016,357.7116,192.5012,398.6020,321.3030,390.5040,680.7354,455.2272,893.7697,575.59130,614.68
EBITDA 3,232.715,628.696,093.243,160.409,664.8119,404.3416,581.4622,195.9529,711.5039,771.8153,238.54
EBIT 1,429.003,525.093,426.33181.025,803.7614,645.189,267.0712,404.9016,605.2022,227.7229,754.02
Tax Rate 0.67%4.03%5.14%-7.39%2.19%1.17%0.97%0.97%0.97%0.97%0.97%
EBIAT 1,419.453,382.883,250.31194.405,676.6014,473.169,177.3012,284.7416,444.3522,012.4129,465.81
Depreciation 1,803.712,103.602,666.902,979.383,861.054,759.157,314.399,791.0513,106.3017,544.0923,484.52
Accounts Receivable --577.73400.17438.51-1,691.35-1,719.97-2,123.82-2,574.45-3,446.16-4,613.03-6,175.01
Inventories -194.02115.48-549.06-234.51-471.81-3,804.63-2,505.58-3,353.97-4,489.62-6,009.81
Accounts Payable -749.32-254.001,269.29-215.59709.263,807.702,770.053,707.994,963.526,644.16
Capital Expenditure -1,664.63914.271,796.82-1,082.564,145.241,908.423,653.004,889.906,545.628,761.97
UFCF 3,223.177,516.737,093.126,129.356,313.6321,895.0416,279.3823,418.8031,348.4141,962.9856,171.64
WACC
PV UFCF 13,984.5217,281.6119,872.1422,851.0026,276.39
SUM PV UFCF 68,192.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 16.41
Free cash flow (t + 1) 58,418.51
Terminal Value 470,737.39
Present Value of Terminal Value 220,205.04

Intrinsic Value

Enterprise Value 288,397.95
Net Debt -3,021.39
Equity Value 291,419.34
Shares Outstanding 1,229.00
Equity Value Per Share 237.12