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ADI

Analog Devices Inc. – Semiconductor and Related Device Manufacturing
Analog Devices is a leading global high-performance analog technology company dedicated to solving the toughest engineering challenges. The company enables its customers to interpret the world around us by intelligently bridging the physical and digital with unmatched technologies that sense, measure, power, connect and interpret.
Analysis Results
Intrinsic Value $1,323.02
Latest Price $139.34
Relative Value 89% undervalued
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Cash Flow (Billions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 57.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 57.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 10.8 9.85
2023 17.0 14.2
2024 26.7 20.6
2025 42.2 29.7
2026 66.5 43.0
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 951 billion. This corresponds to a present value of 563 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 117 billion. Adding in the terminal value gives a total present value of 680 billion.

There are presently 514.0 million outstanding shares, so the intrinsic value per share is 1323.02.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 10,756,634,000
Current Cash 3,955,928,000
Current Liabilities 5,540,624,000
Current Debt 1,033,326,000
Non-Cash Working Capital (NCWC) 2,293,408,000
Change in NCWC 2,196,566,000
EBIT 3,553,314,000
Tax Provision -123,416,000
Depreciation and Amortization 2,149,268,000
Capital Expenditure -687,352,000
Unlevered Free Cash Flow 7,211,796,000
Current Assets 2,517,688,000
Current Cash 1,055,860,000
Current Liabilities 1,364,986,000
Current Debt 0
Non-Cash Working Capital (NCWC) 96,842,000
Change in NCWC -30,997,000
EBIT 1,550,581,000
Tax Provision 90,856,000
Depreciation and Amortization 810,923,000
Capital Expenditure -165,692,000
Unlevered Free Cash Flow 2,057,405,910
Current Assets 1,985,126,000
Current Cash 648,322,000
Current Liabilities 1,508,632,000
Current Debt 299,667,000
Non-Cash Working Capital (NCWC) 127,839,000
Change in NCWC 171,442,000
EBIT 1,806,267,000
Tax Provision 122,717,000
Depreciation and Amortization 811,251,000
Capital Expenditure -275,372,000
Unlevered Free Cash Flow 2,364,395,370
Current Assets 2,112,126,000
Current Cash 816,591,000
Current Liabilities 1,406,138,000
Current Debt 67,000,000
Non-Cash Working Capital (NCWC) -43,603,000
Change in NCWC -50,771,000
EBIT 1,943,053,000
Tax Provision 143,085,000
Depreciation and Amortization 799,063,000
Capital Expenditure -254,876,000
Unlevered Free Cash Flow 2,266,790,114
Current Assets 2,351,338,000
Current Cash 1,047,838,000
Current Liabilities 1,596,332,000
Current Debt 300,000,000
Non-Cash Working Capital (NCWC) 7,168,000
Change in NCWC -128,968,000
EBIT 1,104,597,000
Tax Provision 101,226,000
Depreciation and Amortization 584,059,000
Capital Expenditure -204,098,000
Unlevered Free Cash Flow 1,220,628,068
Current Assets 4,974,863,000
Current Cash 4,055,793,000
Current Liabilities 782,934,000
Current Debt 0
Non-Cash Working Capital (NCWC) 136,136,000
Change in NCWC -175,493,000
EBIT 1,041,796,000
Tax Provision 95,257,000
Depreciation and Amortization 209,790,000
Capital Expenditure -127,397,000
Unlevered Free Cash Flow 844,990,091
Current Assets 4,079,548,000
Current Cash 3,028,928,000
Current Liabilities 1,113,830,000
Current Debt 374,839,000
Non-Cash Working Capital (NCWC) 311,629,000
Change in NCWC 75,267,000
EBIT 1,054,513,000
Tax Provision 113,236,000
Depreciation and Amortization 222,240,000
Capital Expenditure -153,960,000
Unlevered Free Cash Flow 1,050,662,431
Current Assets 3,811,886,000
Current Cash 2,866,468,000
Current Liabilities 709,056,000
Current Debt 0
Non-Cash Working Capital (NCWC) 236,362,000
Change in NCWC 17,361,000
EBIT 789,806,000
Tax Provision 100,025,000
Depreciation and Amortization 141,970,000
Capital Expenditure -177,913,000
Unlevered Free Cash Flow 662,907,160
Current Assets 5,472,425,000
Current Cash 4,682,912,000
Current Liabilities 570,512,000
Current Debt 0
Non-Cash Working Capital (NCWC) 219,001,000
Change in NCWC -66,227,000
EBIT 782,923,000
Tax Provision 141,836,000
Depreciation and Amortization 110,416,000
Capital Expenditure -123,074,000
Unlevered Free Cash Flow 567,838,399
Current Assets 4,696,185,000
Current Cash 3,900,378,000
Current Liabilities 525,079,000
Current Debt 14,500,000
Non-Cash Working Capital (NCWC) 285,228,000
Change in NCWC 1,847,000
EBIT 832,479,000
Tax Provision 162,297,000
Depreciation and Amortization 109,833,000
Capital Expenditure -132,176,000
Unlevered Free Cash Flow 645,906,338

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