DCF Tool

MKSI

MKS Instruments, Inc. – Instruments and Related Products Manufacturing for Measuring, Displaying, and Controlling Industrial Process Variables
MKS Instruments, Inc. is a global provider of instruments, systems, subsystems and process control solutions that measure, monitor, deliver, analyze, power and control critical parameters of advanced manufacturing processes to improve process performance and productivity for our customers. Our products are derived from our core competencies in pressure measurement and control, flow measurement and control, gas and vapor delivery, gas composition analysis, electronic control technology, reactive gas generation and delivery, power generation and delivery, vacuum technology, lasers, photonics, optics, precision motion control, vibration control and laser-based manufacturing systems solutions. We also provide services relating to the maintenance and repair of our products, installation services and training. Our primary served markets include semiconductor, industrial technologies, life and health sciences, research and defense.
Analysis Results
Intrinsic Value $252.35
Latest Price $82.64
Relative Value 67% 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 19.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.9%, 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 0.766 0.691
2023 0.919 0.749
2024 1.1 0.811
2025 1.32 0.878
2026 1.58 0.951
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 18.4 billion. This corresponds to a present value of 9.99 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.08 billion. Adding in the terminal value gives a total present value of 14.1 billion.

There are presently 55.7 million outstanding shares, so the intrinsic value per share is 252.35.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,147,300,000
Current Cash 1,042,700,000
Current Liabilities 460,800,000
Current Debt 9,000,000
Non-Cash Working Capital (NCWC) 652,800,000
Change in NCWC 43,800,000
EBIT 739,800,000
Tax Provision 114,100,000
Depreciation and Amortization 104,100,000
Capital Expenditure -86,700,000
Unlevered Free Cash Flow 674,161,262
Current Assets 1,804,400,000
Current Cash 836,000,000
Current Liabilities 373,900,000
Current Debt 14,500,000
Non-Cash Working Capital (NCWC) 609,000,000
Change in NCWC 5,024,000
EBIT 468,100,000
Tax Provision 72,900,000
Depreciation and Amortization 99,200,000
Capital Expenditure -84,900,000
Unlevered Free Cash Flow 406,751,446
Current Assets 1,433,547,000
Current Cash 523,989,000
Current Liabilities 317,681,000
Current Debt 12,099,000
Non-Cash Working Capital (NCWC) 603,976,000
Change in NCWC 117,342,000
EBIT 268,622,000
Tax Provision 37,450,000
Depreciation and Amortization 110,034,000
Capital Expenditure -63,904,000
Unlevered Free Cash Flow 375,525,622
Current Assets 1,464,104,000
Current Cash 718,171,000
Current Liabilities 263,285,000
Current Debt 3,986,000
Non-Cash Working Capital (NCWC) 486,634,000
Change in NCWC 80,433,000
EBIT 502,117,000
Tax Provision 88,054,000
Depreciation and Amortization 79,853,000
Capital Expenditure -62,941,000
Unlevered Free Cash Flow 507,532,671
Current Assets 1,236,253,000
Current Cash 543,202,000
Current Liabilities 289,822,000
Current Debt 2,972,000
Non-Cash Working Capital (NCWC) 406,201,000
Change in NCWC 51,825,000
EBIT 422,605,000
Tax Provision 108,493,000
Depreciation and Amortization 82,556,000
Capital Expenditure -31,287,000
Unlevered Free Cash Flow 423,270,216
Current Assets 998,769,000
Current Cash 418,086,000
Current Liabilities 237,300,000
Current Debt 10,993,000
Non-Cash Working Capital (NCWC) 354,376,000
Change in NCWC 164,086,000
EBIT 190,188,000
Tax Provision 23,168,000
Depreciation and Amortization 65,926,000
Capital Expenditure -19,123,000
Unlevered Free Cash Flow 366,646,785
Current Assets 939,511,000
Current Cash 658,237,000
Current Liabilities 90,984,000
Current Debt 0
Non-Cash Working Capital (NCWC) 190,290,000
Change in NCWC -9,143,000
EBIT 158,716,000
Tax Provision 37,171,000
Depreciation and Amortization 22,103,000
Capital Expenditure -12,414,000
Unlevered Free Cash Flow 122,266,286
Current Assets 738,091,000
Current Cash 435,031,000
Current Liabilities 103,627,000
Current Debt 0
Non-Cash Working Capital (NCWC) 199,433,000
Change in NCWC 38,241,000
EBIT 138,105,000
Tax Provision 20,615,000
Depreciation and Amortization 20,514,000
Capital Expenditure -13,183,000
Unlevered Free Cash Flow 162,803,241
Current Assets 879,231,000
Current Cash 589,617,000
Current Liabilities 128,422,000
Current Debt 0
Non-Cash Working Capital (NCWC) 161,192,000
Change in NCWC -12,438,000
EBIT 58,851,000
Tax Provision 23,525,000
Depreciation and Amortization 17,102,000
Capital Expenditure -12,410,000
Unlevered Free Cash Flow 27,758,517
Current Assets 868,182,000
Current Cash 615,241,000
Current Liabilities 79,311,000
Current Debt 0
Non-Cash Working Capital (NCWC) 173,630,000
Change in NCWC -51,253,000
EBIT 81,140,000
Tax Provision 27,107,000
Depreciation and Amortization 14,442,000
Capital Expenditure -17,705,000
Unlevered Free Cash Flow -2,649,077

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