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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
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 9,073.0016,357.7116,192.5012,398.6020,321.3030,390.5023,406.7729,115.6836,216.9945,050.3156,038.08
Revenue (%)
EBITDA 3,232.715,628.696,093.243,160.409,664.8119,404.3412,557.7312,403.2815,428.4419,191.4323,872.22
EBITDA (%)
EBIT 1,429.003,525.093,426.33181.025,803.7614,645.187,134.386,949.918,645.0010,753.5113,376.29
EBIT (%)
Depreciation 1,803.712,103.602,666.902,979.383,861.054,759.155,423.355,453.376,783.448,437.9210,495.93
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 3,657.334,534.363,520.254,397.785,427.826,801.397,955.968,664.8310,778.1813,406.9716,676.93
Total Cash (%)
Account Receivables 2,329.042,906.772,506.602,068.093,759.445,479.413,195.025,232.096,508.198,095.5410,070.04
Account Receivables (%)
Inventories 2,649.322,455.292,339.822,888.873,123.383,595.205,119.065,450.456,779.828,433.4210,490.33
Inventories (%)
Accounts Payable 2,114.922,864.242,610.233,879.523,663.934,373.194,625.185,840.607,265.139,037.0911,241.24
Accounts Payable (%)
Capital Expenditure -1,441.70-3,106.33-4,020.60-5,817.42-4,734.86-8,880.11-9,779.35-8,356.20-10,394.28-12,929.44-16,082.93
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 47.94
Diluted Shares Outstanding 1,114.00
Cost of Debt
Tax Rate 9.89
After-tax Cost of Debt -0.44
Risk-Free Rate
Market Risk Premium
Cost of Equity 17.19
Total Debt 4,541.00
Total Equity 53,405.16
Total Capital 57,946.16
Debt Weighting 7.84
Equity Weighting 92.16
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 9,073.0016,357.7116,192.5012,398.6020,321.3030,390.5023,406.7729,115.6836,216.9945,050.3156,038.08
EBITDA 3,232.715,628.696,093.243,160.409,664.8119,404.3412,557.7312,403.2815,428.4419,191.4323,872.22
EBIT 1,429.003,525.093,426.33181.025,803.7614,645.187,134.386,949.918,645.0010,753.5113,376.29
Tax Rate 0.67%4.03%5.14%-7.39%2.19%1.17%9.89%2.24%2.24%2.24%2.24%
EBIAT 1,419.453,382.883,250.31194.405,676.6014,473.166,428.686,794.008,451.0610,512.2713,076.21
Depreciation 1,803.712,103.602,666.902,979.383,861.054,759.155,423.355,453.376,783.448,437.9210,495.93
Accounts Receivable --577.73400.17438.51-1,691.35-1,719.972,284.38-2,037.06-1,276.11-1,587.35-1,974.50
Inventories -194.02115.48-549.06-234.51-471.81-1,523.86-331.39-1,329.37-1,653.60-2,056.91
Accounts Payable -749.32-254.001,269.29-215.59709.26251.981,215.431,424.521,771.962,204.15
Capital Expenditure -1,664.63914.271,796.82-1,082.564,145.24899.24-1,423.152,038.082,535.163,153.49
UFCF 3,223.177,516.737,093.126,129.356,313.6321,895.0413,763.789,671.1916,091.6320,016.3824,898.37
WACC
PV UFCF 7,162.5510,256.0910,978.9511,752.77
SUM PV UFCF 49,219.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 16.20
Free cash flow (t + 1) 25,894.31
Terminal Value 212,248.41
Present Value of Terminal Value 100,187.56

Intrinsic Value

Enterprise Value 149,407.17
Net Debt -3,414.96
Equity Value 152,822.13
Shares Outstanding 1,114.00
Equity Value Per Share 137.18