DCF Tool

IPGP

IPG Photonics Corp – Semiconductor and Related Device Manufacturing
IPG Photonics is an American manufacturer of fiber lasers. IPG Photonics developed and commercialized optical fiber lasers, which are used in a variety of applications including materials processing, medical applications and telecommunications.
Analysis Results
Intrinsic Value $53.53
Latest Price $100.15
Relative Value 87% 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 -1.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -1.1%, 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)
2023 221 202
2024 218 182
2025 216 165
2026 213 149
2027 211 135
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2920 million. This corresponds to a present value of 1700 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 833 million. Adding in the terminal value gives a total present value of 2540 million.

There are presently 47.4 million outstanding shares, so the intrinsic value per share is 53.53.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,986,274,000
Current Cash 1,177,583,000
Current Liabilities 274,646,000
Current Debt 16,031,000
Non-Cash Working Capital (NCWC) 550,076,000
Change in NCWC 12,205,000
EBIT 231,403,000
Tax Provision 72,589,000
Depreciation and Amortization 90,564,000
Capital Expenditure -110,141,000
Unlevered Free Cash Flow 132,418,124
Current Assets 2,347,683,000
Current Cash 1,514,505,000
Current Liabilities 313,433,000
Current Debt 18,126,000
Non-Cash Working Capital (NCWC) 537,871,000
Change in NCWC -8,372,000
EBIT 352,763,000
Tax Provision 88,615,000
Depreciation and Amortization 96,330,000
Capital Expenditure -123,108,000
Unlevered Free Cash Flow 232,315,008
Current Assets 2,148,077,000
Current Cash 1,391,066,000
Current Liabilities 214,578,000
Current Debt 3,810,000
Non-Cash Working Capital (NCWC) 546,243,000
Change in NCWC 20,389,000
EBIT 231,510,000
Tax Provision 45,354,000
Depreciation and Amortization 94,554,000
Capital Expenditure -87,696,000
Unlevered Free Cash Flow 207,710,267
Current Assets 1,896,634,000
Current Cash 1,182,616,000
Current Liabilities 191,904,000
Current Debt 3,740,000
Non-Cash Working Capital (NCWC) 525,854,000
Change in NCWC -493,109,000
EBIT 290,870,000
Tax Provision 68,115,000
Depreciation and Amortization 96,268,000
Capital Expenditure -133,536,000
Unlevered Free Cash Flow -319,275,617
Current Assets 1,805,424,000
Current Cash 544,358,000
Current Liabilities 245,774,000
Current Debt 3,671,000
Non-Cash Working Capital (NCWC) 1,018,963,000
Change in NCWC 370,152,000
EBIT 517,255,000
Tax Provision 130,226,000
Depreciation and Amortization 80,271,000
Capital Expenditure -160,343,000
Unlevered Free Cash Flow 681,285,823
Current Assets 1,754,010,000
Current Cash 909,900,000
Current Liabilities 198,903,000
Current Debt 3,604,000
Non-Cash Working Capital (NCWC) 648,811,000
Change in NCWC 126,791,000
EBIT 565,572,000
Tax Provision 204,283,000
Depreciation and Amortization 64,568,000
Capital Expenditure -126,535,000
Unlevered Free Cash Flow 421,041,377
Current Assets 1,300,962,000
Current Cash 623,855,000
Current Liabilities 158,275,000
Current Debt 3,188,000
Non-Cash Working Capital (NCWC) 522,020,000
Change in NCWC 124,597,000
EBIT 368,809,000
Tax Provision 105,849,000
Depreciation and Amortization 51,475,000
Capital Expenditure -127,042,000
Unlevered Free Cash Flow 311,342,024
Current Assets 1,122,935,000
Current Cash 582,532,000
Current Liabilities 144,980,000
Current Debt 2,000,000
Non-Cash Working Capital (NCWC) 397,423,000
Change in NCWC 131,846,000
EBIT 339,483,000
Tax Provision 99,590,000
Depreciation and Amortization 42,415,000
Capital Expenditure -70,119,000
Unlevered Free Cash Flow 344,657,115
Current Assets 893,838,000
Current Cash 522,150,000
Current Liabilities 122,075,000
Current Debt 15,964,000
Non-Cash Working Capital (NCWC) 265,577,000
Change in NCWC 23,460,000
EBIT 277,140,000
Tax Provision 84,029,000
Depreciation and Amortization 35,612,000
Capital Expenditure -90,601,000
Unlevered Free Cash Flow 163,748,344
Current Assets 786,343,000
Current Cash 448,776,000
Current Liabilities 100,079,000
Current Debt 4,629,000
Non-Cash Working Capital (NCWC) 242,117,000
Change in NCWC 82,719,000
EBIT 220,683,000
Tax Provision 62,521,000
Depreciation and Amortization 31,524,000
Capital Expenditure -70,919,000
Unlevered Free Cash Flow 200,803,799
Current Assets 664,959,000
Current Cash 384,053,000
Current Liabilities 125,455,000
Current Debt 3,947,000
Non-Cash Working Capital (NCWC) 159,398,000
Change in NCWC 15,668,000
EBIT 210,250,000
Tax Provision 61,471,000
Depreciation and Amortization 26,144,000
Capital Expenditure -68,184,000
Unlevered Free Cash Flow 122,102,899

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