DCF Tool

MRCY

Mercury Systems Inc – Search, Detection, Navigation, Guidance, Aeronautical, and Nautical System and Instrument Manufacturing
Mercury Systems is a leading technology company serving the aerospace and defense industry, positioned at the intersection of high-tech and defense. Headquartered in Andover, Mass., the Company delivers solutions that power a broad range of aerospace and defense programs, optimized for mission success in some of the most challenging and demanding environments. The Company envisions, creates and delivers innovative technology solutions purpose-built to meet customers' most-pressing high-tech needs, including those specific to the defense community.
Analysis Results
Intrinsic Value $225.71
Latest Price $58.11
Relative Value 74% undervalued
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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 30.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 30.6%, 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 257 241
2023 336 295
2024 438 361
2025 572 442
2026 747 541
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 16400 million. This corresponds to a present value of 11100 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1880 million. Adding in the terminal value gives a total present value of 13000 million.

There are presently 57.7 million outstanding shares, so the intrinsic value per share is 225.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 643,100,000
Current Cash 113,839,000
Current Liabilities 150,823,000
Current Debt 0
Non-Cash Working Capital (NCWC) 378,438,000
Change in NCWC 96,422,000
EBIT 96,199,000
Tax Provision 15,129,000
Depreciation and Amortization 67,083,000
Capital Expenditure -45,599,000
Unlevered Free Cash Flow 195,246,141
Current Assets 634,769,000
Current Cash 226,838,000
Current Liabilities 125,915,000
Current Debt 0
Non-Cash Working Capital (NCWC) 282,016,000
Change in NCWC 55,808,000
EBIT 95,546,000
Tax Provision 8,221,000
Depreciation and Amortization 49,330,000
Capital Expenditure -43,294,000
Unlevered Free Cash Flow 149,027,830
Current Assets 582,172,000
Current Cash 257,932,000
Current Liabilities 98,032,000
Current Debt 0
Non-Cash Working Capital (NCWC) 226,208,000
Change in NCWC 32,666,000
EBIT 78,600,000
Tax Provision 12,752,000
Depreciation and Amortization 46,392,000
Capital Expenditure -26,691,000
Unlevered Free Cash Flow 114,129,141
Current Assets 331,743,000
Current Cash 66,521,000
Current Liabilities 71,680,000
Current Debt 0
Non-Cash Working Capital (NCWC) 193,542,000
Change in NCWC 61,828,000
EBIT 52,682,000
Tax Provision 1,690,000
Depreciation and Amortization 42,277,000
Capital Expenditure -15,106,000
Unlevered Free Cash Flow 139,589,707
Current Assets 246,196,000
Current Cash 41,637,000
Current Liabilities 72,845,000
Current Debt 0
Non-Cash Working Capital (NCWC) 131,714,000
Change in NCWC 25,657,000
EBIT 41,286,000
Tax Provision 6,193,000
Depreciation and Amortization 32,269,000
Capital Expenditure -32,844,000
Unlevered Free Cash Flow 58,138,175
Current Assets 245,392,000
Current Cash 81,691,000
Current Liabilities 67,644,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 106,057,000
Change in NCWC 28,764,000
EBIT 29,437,000
Tax Provision 5,544,000
Depreciation and Amortization 15,742,000
Capital Expenditure -7,885,000
Unlevered Free Cash Flow 59,603,885
Current Assets 188,164,000
Current Cash 77,586,000
Current Liabilities 33,285,000
Current Debt 0
Non-Cash Working Capital (NCWC) 77,293,000
Change in NCWC -2,795,000
EBIT 21,647,000
Tax Provision 4,366,000
Depreciation and Amortization 13,840,000
Capital Expenditure -5,984,000
Unlevered Free Cash Flow 21,679,492
Current Assets 160,305,000
Current Cash 47,287,000
Current Liabilities 32,930,000
Current Debt 0
Non-Cash Working Capital (NCWC) 80,088,000
Change in NCWC 3,731,000
EBIT -1,962,000
Tax Provision -1,841,000
Depreciation and Amortization 15,608,000
Capital Expenditure -6,701,000
Unlevered Free Cash Flow 10,676,000
Current Assets 146,301,000
Current Cash 39,126,000
Current Liabilities 30,818,000
Current Debt 0
Non-Cash Working Capital (NCWC) 76,357,000
Change in NCWC 21,560,000
EBIT -16,315,000
Tax Provision -9,954,000
Depreciation and Amortization 17,209,000
Capital Expenditure -3,880,000
Unlevered Free Cash Flow 18,574,000
Current Assets 207,703,000
Current Cash 115,964,000
Current Liabilities 36,942,000
Current Debt 0
Non-Cash Working Capital (NCWC) 54,797,000
Change in NCWC 13,694,000
EBIT 29,214,000
Tax Provision 9,152,000
Depreciation and Amortization 11,658,000
Capital Expenditure -9,477,000
Unlevered Free Cash Flow 36,673,573

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