DCF Tool

MU

Micron Technology Inc. – Semiconductor and Related Device Manufacturing
It is an industry leader in innovative memory and storage solutions. Through its global brands - Micron® and Crucial® - its broad portfolio of high-performance memory and storage technologies, including DRAM, NAND, 3D XPoint™ memory, and NOR, is transforming how the world uses information to enrich life for all. Backed by more than 40 years of technology leadership, its memory and storage solutions enable disruptive trends, including artificial intelligence, 5G, machine learning, and autonomous vehicles, in key market segments like mobile, data center, client, consumer, industrial, graphics, automotive, and networking.
Analysis Results
Intrinsic Value $29.05
Latest Price $50.10
Relative Value 72% 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 1.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 1.9%, 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 3.0 2.71
2023 3.05 2.49
2024 3.11 2.29
2025 3.17 2.11
2026 3.23 1.94
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 37.8 billion. This corresponds to a present value of 20.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 11.5 billion. Adding in the terminal value gives a total present value of 32.0 billion.

There are presently 1.1 billion outstanding shares, so the intrinsic value per share is 29.05.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 19,907,000,000
Current Cash 8,633,000,000
Current Liabilities 6,424,000,000
Current Debt 155,000,000
Non-Cash Working Capital (NCWC) 5,005,000,000
Change in NCWC 1,547,000,000
EBIT 6,912,000,000
Tax Provision 394,000,000
Depreciation and Amortization 6,214,000,000
Capital Expenditure -10,030,000,000
Unlevered Free Cash Flow 4,207,615,827
Current Assets 17,965,000,000
Current Cash 8,142,000,000
Current Liabilities 6,635,000,000
Current Debt 270,000,000
Non-Cash Working Capital (NCWC) 3,458,000,000
Change in NCWC -10,000,000
EBIT 3,067,000,000
Tax Provision 280,000,000
Depreciation and Amortization 5,650,000,000
Capital Expenditure -8,223,000,000
Unlevered Free Cash Flow 196,789,297
Current Assets 16,503,000,000
Current Cash 7,955,000,000
Current Liabilities 6,390,000,000
Current Debt 1,310,000,000
Non-Cash Working Capital (NCWC) 3,468,000,000
Change in NCWC -874,000,000
EBIT 7,393,000,000
Tax Provision 693,000,000
Depreciation and Amortization 5,424,000,000
Capital Expenditure -9,780,000,000
Unlevered Free Cash Flow 1,436,386,895
Current Assets 16,039,000,000
Current Cash 6,802,000,000
Current Liabilities 5,754,000,000
Current Debt 859,000,000
Non-Cash Working Capital (NCWC) 4,342,000,000
Change in NCWC 1,385,000,000
EBIT 14,925,000,000
Tax Provision 168,000,000
Depreciation and Amortization 4,759,000,000
Capital Expenditure -8,879,000,000
Unlevered Free Cash Flow 12,014,730,882
Current Assets 12,457,000,000
Current Cash 5,428,000,000
Current Liabilities 5,334,000,000
Current Debt 1,262,000,000
Non-Cash Working Capital (NCWC) 2,957,000,000
Change in NCWC 1,939,000,000
EBIT 5,872,000,000
Tax Provision 114,000,000
Depreciation and Amortization 3,861,000,000
Capital Expenditure -4,734,000,000
Unlevered Free Cash Flow 6,809,366,641
Current Assets 9,495,000,000
Current Cash 4,398,000,000
Current Liabilities 4,835,000,000
Current Debt 756,000,000
Non-Cash Working Capital (NCWC) 1,018,000,000
Change in NCWC -1,241,000,000
EBIT 256,000,000
Tax Provision 19,000,000
Depreciation and Amortization 2,980,000,000
Capital Expenditure -5,817,000,000
Unlevered Free Cash Flow -3,822,000,000
Current Assets 8,596,000,000
Current Cash 3,521,000,000
Current Liabilities 3,905,000,000
Current Debt 1,089,000,000
Non-Cash Working Capital (NCWC) 2,259,000,000
Change in NCWC -279,000,000
EBIT 3,403,000,000
Tax Provision 157,000,000
Depreciation and Amortization 2,667,000,000
Capital Expenditure -4,021,000,000
Unlevered Free Cash Flow 1,595,173,102
Current Assets 10,245,000,000
Current Cash 4,534,000,000
Current Liabilities 4,811,000,000
Current Debt 1,638,000,000
Non-Cash Working Capital (NCWC) 2,538,000,000
Change in NCWC -732,000,000
EBIT 3,833,000,000
Tax Provision 128,000,000
Depreciation and Amortization 2,103,000,000
Capital Expenditure -2,658,000,000
Unlevered Free Cash Flow 2,393,014,655
Current Assets 8,911,000,000
Current Cash 3,101,000,000
Current Liabilities 4,125,000,000
Current Debt 1,585,000,000
Non-Cash Working Capital (NCWC) 3,270,000,000
Change in NCWC 2,090,000,000
EBIT 271,000,000
Tax Provision 8,000,000
Depreciation and Amortization 1,804,000,000
Capital Expenditure -1,244,000,000
Unlevered Free Cash Flow 2,919,196,339
Current Assets 5,758,000,000
Current Cash 2,559,000,000
Current Liabilities 2,243,000,000
Current Debt 224,000,000
Non-Cash Working Capital (NCWC) 1,180,000,000
Change in NCWC -152,000,000
EBIT -864,000,000
Tax Provision -17,000,000
Depreciation and Amortization 2,141,000,000
Capital Expenditure -1,699,000,000
Unlevered Free Cash Flow -574,000,000

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