DCF Tool

FORM

FormFactor Inc. – Semiconductor and Related Device Manufacturing
FormFactor, Inc. is a leading provider of essential test and measurement technologies along the full IC life cycle - from metrology and inspection, characterization, modeling, reliability, and design de-bug, to qualification and production test. Semiconductor companies rely upon FormFactor's products and services to accelerate profitability by optimizing device performance and advancing yield knowledge. The Company serves customers through its network of facilities in Asia, Europe, and North America.
Analysis Results
Intrinsic Value $17.75
Latest Price $24.14
Relative Value 36% overvalued
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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 16.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 16.5%, 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 90.9 81.4
2023 106 85.0
2024 123 88.7
2025 144 92.6
2026 167 96.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1780 million. This corresponds to a present value of 923 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 444 million. Adding in the terminal value gives a total present value of 1370 million.

There are presently 77.0 million outstanding shares, so the intrinsic value per share is 17.75.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 524,039,000
Current Cash 276,065,000
Current Liabilities 148,754,000
Current Debt 8,931,000
Non-Cash Working Capital (NCWC) 108,151,000
Change in NCWC 21,167,000
EBIT 98,038,000
Tax Provision 14,576,000
Depreciation and Amortization 44,519,000
Capital Expenditure -66,496,000
Unlevered Free Cash Flow 82,720,366
Current Assets 487,074,000
Current Cash 255,035,000
Current Liabilities 154,571,000
Current Debt 9,516,000
Non-Cash Working Capital (NCWC) 86,984,000
Change in NCWC -17,473,000
EBIT 83,788,000
Tax Provision 6,652,000
Depreciation and Amortization 48,685,000
Capital Expenditure -55,865,000
Unlevered Free Cash Flow 52,591,321
Current Assets 419,043,000
Current Cash 220,872,000
Current Liabilities 136,560,000
Current Debt 42,846,000
Non-Cash Working Capital (NCWC) 104,457,000
Change in NCWC -11,682,000
EBIT 49,662,000
Tax Provision 11,717,000
Depreciation and Amortization 44,857,000
Capital Expenditure -20,847,000
Unlevered Free Cash Flow 50,594,475
Current Assets 337,820,000
Current Cash 149,003,000
Current Liabilities 102,518,000
Current Debt 29,840,000
Non-Cash Working Capital (NCWC) 116,139,000
Change in NCWC 24,175,000
EBIT 36,269,000
Tax Provision -70,109,000
Depreciation and Amortization 43,687,000
Capital Expenditure -19,869,000
Unlevered Free Cash Flow 84,262,000
Current Assets 305,854,000
Current Cash 140,172,000
Current Liabilities 92,161,000
Current Debt 18,443,000
Non-Cash Working Capital (NCWC) 91,964,000
Change in NCWC 16,166,000
EBIT 47,111,000
Tax Provision 1,293,000
Depreciation and Amortization 44,566,000
Capital Expenditure -17,756,000
Unlevered Free Cash Flow 88,643,733
Current Assets 254,709,000
Current Cash 108,905,000
Current Liabilities 82,707,000
Current Debt 12,701,000
Non-Cash Working Capital (NCWC) 75,798,000
Change in NCWC 48,950,000
EBIT -28,215,000
Tax Provision -43,638,000
Depreciation and Amortization 46,798,000
Capital Expenditure -11,521,000
Unlevered Free Cash Flow 56,012,000
Current Assets 258,018,000
Current Cash 187,589,000
Current Liabilities 43,581,000
Current Debt 0
Non-Cash Working Capital (NCWC) 26,848,000
Change in NCWC -5,727,000
EBIT -3,536,000
Tax Provision 252,000
Depreciation and Amortization 23,771,000
Capital Expenditure -8,640,000
Unlevered Free Cash Flow 5,868,000
Current Assets 244,274,000
Current Cash 163,837,000
Current Liabilities 47,862,000
Current Debt 0
Non-Cash Working Capital (NCWC) 32,575,000
Change in NCWC 9,515,000
EBIT -16,671,000
Tax Provision -910,000
Depreciation and Amortization 30,491,000
Capital Expenditure -5,670,000
Unlevered Free Cash Flow 17,665,000
Current Assets 211,651,000
Current Cash 151,091,000
Current Liabilities 37,770,000
Current Debt 270,000
Non-Cash Working Capital (NCWC) 23,060,000
Change in NCWC -5,850,000
EBIT -53,072,000
Tax Provision -99,000
Depreciation and Amortization 28,909,000
Capital Expenditure -8,530,000
Unlevered Free Cash Flow -38,543,000
Current Assets 239,172,000
Current Cash 165,788,000
Current Liabilities 45,047,000
Current Debt 573,000
Non-Cash Working Capital (NCWC) 28,910,000
Change in NCWC 17,221,000
EBIT -64,030,000
Tax Provision -26,420,000
Depreciation and Amortization 16,901,000
Capital Expenditure -7,952,000
Unlevered Free Cash Flow -37,860,000

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