DCF Tool

AEIS

Advanced Energy Industries Inc. – Semiconductor and Related Device Manufacturing
Advanced Energy is a global leader in the design and manufacturing of highly engineered, precision power conversion, measurement and control solutions for mission-critical applications and processes. AE's power solutions enable customer innovation in complex applications for a wide range of industries including semiconductor equipment, industrial, manufacturing, telecommunications, data center computing and healthcare. With engineering know-how and responsive service and support around the globe, the company builds collaborative partnerships to meet technology advances, propel growth for its customers and innovate the future of power. Advanced Energy has devoted more than three decades to perfecting power for its global customers and is headquartered in Denver, Colorado, USA.
Analysis Results
Intrinsic Value $308.60
Latest Price $96.42
Relative Value 69% undervalued
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Cash Flow (Millions)
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 13.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.3%, 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 (million) Present value (million)
2022 238 232
2023 269 256
2024 305 283
2025 346 313
2026 392 345
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 11800 million. This corresponds to a present value of 10100 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1430 million. Adding in the terminal value gives a total present value of 11500 million.

There are presently 37.4 million outstanding shares, so the intrinsic value per share is 308.6.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,162,234,000
Current Cash 546,668,000
Current Liabilities 370,196,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) 265,370,000
Change in NCWC 47,040,000
EBIT 156,433,000
Tax Provision 14,004,000
Depreciation and Amortization 52,893,000
Capital Expenditure -31,877,000
Unlevered Free Cash Flow 209,757,825
Current Assets 980,249,000
Current Cash 483,022,000
Current Liabilities 296,397,000
Current Debt 17,500,000
Non-Cash Working Capital (NCWC) 218,330,000
Change in NCWC 3,479,000
EBIT 189,189,000
Tax Provision 22,996,000
Depreciation and Amortization 47,770,000
Capital Expenditure -36,483,000
Unlevered Free Cash Flow 176,445,213
Current Assets 866,738,000
Current Cash 349,055,000
Current Liabilities 320,332,000
Current Debt 17,500,000
Non-Cash Working Capital (NCWC) 214,851,000
Change in NCWC 108,483,000
EBIT 59,426,000
Tax Provision 10,699,000
Depreciation and Amortization 26,147,000
Capital Expenditure -25,188,000
Unlevered Free Cash Flow 159,405,863
Current Assets 568,448,000
Current Cash 351,771,000
Current Liabilities 110,309,000
Current Debt 0
Non-Cash Working Capital (NCWC) 106,368,000
Change in NCWC 27,649,000
EBIT 175,792,000
Tax Provision 25,227,000
Depreciation and Amortization 13,592,000
Capital Expenditure -20,330,000
Unlevered Free Cash Flow 170,976,072
Current Assets 595,225,000
Current Cash 410,387,000
Current Liabilities 106,119,000
Current Debt 0
Non-Cash Working Capital (NCWC) 78,719,000
Change in NCWC 22,121,000
EBIT 200,770,000
Tax Provision 62,090,000
Depreciation and Amortization 9,424,000
Capital Expenditure -9,042,000
Unlevered Free Cash Flow 160,375,041
Current Assets 438,334,000
Current Cash 286,690,000
Current Liabilities 95,046,000
Current Debt 0
Non-Cash Working Capital (NCWC) 56,598,000
Change in NCWC -11,664,000
EBIT 126,857,000
Tax Provision 11,128,000
Depreciation and Amortization 7,813,000
Capital Expenditure -6,821,000
Unlevered Free Cash Flow 105,162,913
Current Assets 342,775,000
Current Cash 170,429,000
Current Liabilities 104,084,000
Current Debt 0
Non-Cash Working Capital (NCWC) 68,262,000
Change in NCWC -67,554,000
EBIT 106,854,000
Tax Provision 21,960,000
Depreciation and Amortization 8,832,000
Capital Expenditure -4,014,000
Unlevered Free Cash Flow 21,863,928
Current Assets 376,754,000
Current Cash 128,368,000
Current Liabilities 112,570,000
Current Debt 0
Non-Cash Working Capital (NCWC) 135,816,000
Change in NCWC -22,764,000
EBIT 42,779,000
Tax Provision -7,304,000
Depreciation and Amortization 20,919,000
Capital Expenditure -6,105,000
Unlevered Free Cash Flow 34,829,000
Current Assets 416,969,000
Current Cash 149,693,000
Current Liabilities 122,357,000
Current Debt 13,661,000
Non-Cash Working Capital (NCWC) 158,580,000
Change in NCWC 48,963,000
EBIT 61,018,000
Tax Provision -17,802,000
Depreciation and Amortization 18,871,000
Capital Expenditure -9,611,000
Unlevered Free Cash Flow 119,241,000
Current Assets 370,510,000
Current Cash 172,247,000
Current Liabilities 88,646,000
Current Debt 0
Non-Cash Working Capital (NCWC) 109,617,000
Change in NCWC -46,419,000
EBIT 34,847,000
Tax Provision 9,630,000
Depreciation and Amortization 17,786,000
Capital Expenditure -10,233,000
Unlevered Free Cash Flow -15,277,693

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