DCF Tool

FLEX

Flex Ltd – Bare Printed Circuit Board Manufacturing
Flex is the manufacturing partner of choice that helps a diverse customer base design and build products that improve the world. Through the collective strength of a global workforce across 30 countries and responsible, sustainable operations, Flex delivers technology innovation, supply chain, and manufacturing solutions to diverse industries and end markets.
Analysis Results
Intrinsic Value $98.03
Latest Price $18.76
Relative Value 81% 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 20.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.7%, 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)
2023 1.62 1.5
2024 1.96 1.67
2025 2.37 1.87
2026 2.85 2.08
2027 3.44 2.32
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 56.6 billion. This corresponds to a present value of 35.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 9.45 billion. Adding in the terminal value gives a total present value of 44.7 billion.

There are presently 456.0 million outstanding shares, so the intrinsic value per share is 98.03.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 14,337,000,000
Current Cash 2,964,000,000
Current Liabilities 10,711,000,000
Current Debt 949,000,000
Non-Cash Working Capital (NCWC) 1,611,000,000
Change in NCWC 451,000,000
EBIT 987,000,000
Tax Provision 105,000,000
Depreciation and Amortization 484,000,000
Capital Expenditure -443,000,000
Unlevered Free Cash Flow 1,379,827,751
Current Assets 11,363,000,000
Current Cash 2,637,000,000
Current Liabilities 7,834,000,000
Current Debt 268,000,000
Non-Cash Working Capital (NCWC) 1,160,000,000
Change in NCWC 1,058,371,000
EBIT 979,000,000
Tax Provision 101,000,000
Depreciation and Amortization 569,000,000
Capital Expenditure -351,000,000
Unlevered Free Cash Flow 2,116,885,005
Current Assets 9,086,270,000
Current Cash 1,922,686,000
Current Liabilities 7,211,085,000
Current Debt 149,130,000
Non-Cash Working Capital (NCWC) 101,629,000
Change in NCWC -340,276,000
EBIT 630,169,000
Tax Provision 70,906,000
Depreciation and Amortization 748,050,000
Capital Expenditure -461,745,000
Unlevered Free Cash Flow 294,261,140
Current Assets 9,103,432,000
Current Cash 1,696,625,000
Current Liabilities 7,597,513,000
Current Debt 632,611,000
Non-Cash Working Capital (NCWC) 441,905,000
Change in NCWC -31,032,000
EBIT 589,307,000
Tax Provision 88,727,000
Depreciation and Amortization 764,952,000
Capital Expenditure -725,606,000
Unlevered Free Cash Flow 310,526,119
Current Assets 9,170,414,000
Current Cash 1,472,424,000
Current Liabilities 7,268,064,000
Current Debt 43,011,000
Non-Cash Working Capital (NCWC) 472,937,000
Change in NCWC 358,929,000
EBIT 564,688,000
Tax Provision 92,359,000
Depreciation and Amortization 555,364,000
Capital Expenditure -561,997,000
Unlevered Free Cash Flow 816,859,753
Current Assets 8,387,776,000
Current Cash 1,830,675,000
Current Liabilities 6,504,627,000
Current Debt 61,534,000
Non-Cash Working Capital (NCWC) 114,008,000
Change in NCWC -86,509,000
EBIT 540,968,000
Tax Provision 51,284,000
Depreciation and Amortization 609,660,000
Capital Expenditure -525,111,000
Unlevered Free Cash Flow 464,198,366
Current Assets 8,315,126,000
Current Cash 1,607,570,000
Current Liabilities 6,572,205,000
Current Debt 65,166,000
Non-Cash Working Capital (NCWC) 200,517,000
Change in NCWC -201,914,000
EBIT 587,206,000
Tax Provision 10,594,000
Depreciation and Amortization 515,367,000
Capital Expenditure -510,634,000
Unlevered Free Cash Flow 376,343,006
Current Assets 8,740,900,000
Current Cash 1,628,408,000
Current Liabilities 6,756,223,000
Current Debt 46,162,000
Non-Cash Working Capital (NCWC) 402,431,000
Change in NCWC 219,945,000
EBIT 668,832,000
Tax Provision 69,854,000
Depreciation and Amortization 540,490,000
Capital Expenditure -347,413,000
Unlevered Free Cash Flow 1,012,189,879
Current Assets 9,400,326,000
Current Cash 1,593,728,000
Current Liabilities 7,656,687,000
Current Debt 32,575,000
Non-Cash Working Capital (NCWC) 182,486,000
Change in NCWC -245,697,000
EBIT 595,181,000
Tax Provision 34,860,000
Depreciation and Amortization 464,543,000
Capital Expenditure -609,643,000
Unlevered Free Cash Flow 152,572,781
Current Assets 7,771,401,000
Current Cash 1,587,087,000
Current Liabilities 6,172,785,000
Current Debt 416,654,000
Non-Cash Working Capital (NCWC) 428,183,000
Change in NCWC -342,320,000
EBIT 547,318,000
Tax Provision 26,313,000
Depreciation and Amortization 566,357,000
Capital Expenditure -488,993,000
Unlevered Free Cash Flow 238,563,576
Current Assets 8,534,550,000
Current Cash 1,518,329,000
Current Liabilities 6,288,185,000
Current Debt 42,467,000
Non-Cash Working Capital (NCWC) 770,503,000
Change in NCWC 272,527,000
EBIT 580,809,000
Tax Provision 54,116,000
Depreciation and Amortization 521,923,000
Capital Expenditure -437,191,000
Unlevered Free Cash Flow 882,414,263

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