DCF Tool

MPWR

Monolithic Power System Inc – Semiconductor and Related Device Manufacturing
Monolithic Power Systems, Inc. provides small, highly energy efficient, easy-to-use power solutions for systems found in industrial applications, telecom infrastructures, cloud computing, automotive, and consumer applications. MPS' mission is to reduce total energy consumption in its customers' systems with green, practical, compact solutions.
Analysis Results
Intrinsic Value $139.10
Latest Price $385.35
Relative Value 177% overvalued
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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 39.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 14.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 39.1%, 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 (billion) Present value (billion)
2022 0.324 0.283
2023 0.451 0.343
2024 0.627 0.417
2025 0.872 0.507
2026 1.21 0.615
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9.86 billion. This corresponds to a present value of 4.36 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.16 billion. Adding in the terminal value gives a total present value of 6.53 billion.

There are presently 46.9 million outstanding shares, so the intrinsic value per share is 139.1.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,124,852,000
Current Cash 725,082,000
Current Liabilities 226,944,000
Current Debt 0
Non-Cash Working Capital (NCWC) 172,826,000
Change in NCWC 72,910,000
EBIT 268,642,000
Tax Provision 30,196,000
Depreciation and Amortization 28,699,000
Capital Expenditure -95,238,000
Unlevered Free Cash Flow 245,213,780
Current Assets 841,998,000
Current Cash 595,113,000
Current Liabilities 146,969,000
Current Debt 0
Non-Cash Working Capital (NCWC) 99,916,000
Change in NCWC -1,668,000
EBIT 166,686,000
Tax Provision 4,967,000
Depreciation and Amortization 19,186,000
Capital Expenditure -55,639,000
Unlevered Free Cash Flow 123,675,903
Current Assets 655,206,000
Current Cash 455,397,000
Current Liabilities 98,225,000
Current Debt 0
Non-Cash Working Capital (NCWC) 101,584,000
Change in NCWC -21,506,000
EBIT 105,026,000
Tax Provision 4,281,000
Depreciation and Amortization 14,867,000
Capital Expenditure -95,806,000
Unlevered Free Cash Flow -1,393,684
Current Assets 580,810,000
Current Cash 377,281,000
Current Liabilities 80,439,000
Current Debt 0
Non-Cash Working Capital (NCWC) 123,090,000
Change in NCWC 38,927,000
EBIT 115,410,000
Tax Provision 13,214,000
Depreciation and Amortization 12,311,000
Capital Expenditure -22,526,000
Unlevered Free Cash Flow 131,250,612
Current Assets 449,170,000
Current Cash 299,090,000
Current Liabilities 65,917,000
Current Debt 0
Non-Cash Working Capital (NCWC) 84,163,000
Change in NCWC 22,324,000
EBIT 78,667,000
Tax Provision 17,741,000
Depreciation and Amortization 16,101,000
Capital Expenditure -65,773,000
Unlevered Free Cash Flow 34,492,813
Current Assets 382,984,000
Current Cash 268,224,000
Current Liabilities 52,921,000
Current Debt 0
Non-Cash Working Capital (NCWC) 61,839,000
Change in NCWC 8,157,000
EBIT 54,218,000
Tax Provision 4,544,000
Depreciation and Amortization 14,674,000
Capital Expenditure -37,112,000
Unlevered Free Cash Flow 35,634,705
Current Assets 331,928,000
Current Cash 234,963,000
Current Liabilities 43,283,000
Current Debt 0
Non-Cash Working Capital (NCWC) 53,682,000
Change in NCWC 21,115,000
EBIT 42,070,000
Tax Provision 7,319,000
Depreciation and Amortization 13,783,000
Capital Expenditure -16,024,000
Unlevered Free Cash Flow 53,697,516
Current Assets 308,146,000
Current Cash 238,718,000
Current Liabilities 36,861,000
Current Debt 0
Non-Cash Working Capital (NCWC) 32,567,000
Change in NCWC 5,309,000
EBIT 27,273,000
Tax Provision 897,000
Depreciation and Amortization 13,130,000
Capital Expenditure -9,511,000
Unlevered Free Cash Flow 35,528,767
Current Assets 292,086,000
Current Cash 226,339,000
Current Liabilities 38,489,000
Current Debt 0
Non-Cash Working Capital (NCWC) 27,258,000
Change in NCWC -2,958,000
EBIT 23,544,000
Tax Provision 1,109,000
Depreciation and Amortization 12,160,000
Capital Expenditure -15,764,000
Unlevered Free Cash Flow 15,894,388
Current Assets 214,301,000
Current Cash 160,625,000
Current Liabilities 23,460,000
Current Debt 0
Non-Cash Working Capital (NCWC) 30,216,000
Change in NCWC 18,979,000
EBIT 14,334,000
Tax Provision 2,134,000
Depreciation and Amortization 9,332,000
Capital Expenditure -21,059,000
Unlevered Free Cash Flow 19,876,175

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