DCF Tool

MXL

MaxLinear Inc – Semiconductor and Related Device Manufacturing
maxlinear is a global, new york stock exchange-traded company (nyse: mxl) where the entrepreneurial spirit is alive and well. we are a fabless system-on-chip product company, designing highly integrated, radio-frequency, and mixed-signal communications ics for broadband and infrastructure applications. we hire the best people in the world and engage them in some of the most exciting opportunities in our broadband and infrastructure markets. our growth has come from innovative, bold approaches to solving some of the world’s most challenging communication technology problems. maxlinear began by developing the world’s first high-performance tv tuner chip using standard cmos process technology. others said we couldn’t achieve the extremely high performance requirements using cmos, but we proved them wrong and achieved enduring global market leadership with our designs. since then, we’ve developed a full line of products for satellite communications, cable modems, and terrestrial tv; divers
Analysis Results
Intrinsic Value $16.76
Latest Price $22.05
Relative Value 32% 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 9.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 9.2%, 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)
2024 117 105
2025 128 102
2026 140 100
2027 153 97.8
2028 167 95.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1740 million. This corresponds to a present value of 891 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 501 million. Adding in the terminal value gives a total present value of 1390 million.

There are presently 83.1 million outstanding shares, so the intrinsic value per share is 16.76.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 488,025,000
Current Cash 187,288,000
Current Liabilities 222,129,000
Current Debt 0
Non-Cash Working Capital (NCWC) 78,608,000
Change in NCWC 62,452,000
EBIT -15,997,000
Tax Provision 9,337,000
Depreciation and Amortization 71,516,000
Capital Expenditure -19,809,000
Unlevered Free Cash Flow 98,162,000
Current Assets 563,124,000
Current Cash 205,882,000
Current Liabilities 341,086,000
Current Debt 0
Non-Cash Working Capital (NCWC) 16,156,000
Change in NCWC -49,981,000
EBIT 185,319,000
Tax Provision 49,158,000
Depreciation and Amortization 80,731,000
Capital Expenditure -52,437,000
Unlevered Free Cash Flow 111,335,696
Current Assets 404,104,000
Current Cash 130,572,000
Current Liabilities 207,395,000
Current Debt 0
Non-Cash Working Capital (NCWC) 66,137,000
Change in NCWC 86,981,000
EBIT 67,449,000
Tax Provision 5,901,000
Depreciation and Amortization 91,792,000
Capital Expenditure -46,757,000
Unlevered Free Cash Flow 191,150,470
Current Assets 361,718,000
Current Cash 148,901,000
Current Liabilities 233,661,000
Current Debt 0
Non-Cash Working Capital (NCWC) -20,844,000
Change in NCWC -43,344,000
EBIT -97,220,000
Tax Provision -16,259,000
Depreciation and Amortization 76,513,000
Capital Expenditure -15,286,000
Unlevered Free Cash Flow -79,337,000
Current Assets 181,770,000
Current Cash 92,708,000
Current Liabilities 66,562,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,500,000
Change in NCWC -14,402,000
EBIT -19,421,000
Tax Provision -12,586,000
Depreciation and Amortization 66,401,000
Capital Expenditure -6,973,000
Unlevered Free Cash Flow 25,605,000
Current Assets 180,611,000
Current Cash 73,142,000
Current Liabilities 70,567,000
Current Debt 0
Non-Cash Working Capital (NCWC) 36,902,000
Change in NCWC -16,144,000
EBIT -13,061,000
Tax Provision -6,653,000
Depreciation and Amortization 79,027,000
Capital Expenditure -7,825,000
Unlevered Free Cash Flow 41,997,000
Current Assets 201,304,000
Current Cash 71,872,000
Current Liabilities 76,386,000
Current Debt 0
Non-Cash Working Capital (NCWC) 53,046,000
Change in NCWC 22,560,000
EBIT -10,147,000
Tax Provision -24,811,000
Depreciation and Amortization 66,738,000
Capital Expenditure -12,846,000
Unlevered Free Cash Flow 66,305,000
Current Assets 214,043,000
Current Cash 129,014,000
Current Liabilities 54,543,000
Current Debt 0
Non-Cash Working Capital (NCWC) 30,486,000
Change in NCWC 7,572,000
EBIT 67,791,000
Tax Provision 2,398,000
Depreciation and Amortization 26,703,000
Capital Expenditure -8,902,000
Unlevered Free Cash Flow 90,611,592
Current Assets 190,002,000
Current Cash 111,256,000
Current Liabilities 55,832,000
Current Debt 0
Non-Cash Working Capital (NCWC) 22,914,000
Change in NCWC 24,341,000
EBIT -7,963,000
Tax Provision -575,000
Depreciation and Amortization 40,641,000
Capital Expenditure -3,096,000
Unlevered Free Cash Flow 53,923,000
Current Assets 100,914,000
Current Cash 69,095,000
Current Liabilities 33,246,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,427,000
Change in NCWC 3,959,000
EBIT -8,858,000
Tax Provision -1,704,000
Depreciation and Amortization 5,107,000
Capital Expenditure -8,800,000
Unlevered Free Cash Flow -8,592,000
Current Assets 93,716,000
Current Cash 61,944,000
Current Liabilities 37,158,000
Current Debt 0
Non-Cash Working Capital (NCWC) -5,386,000
Change in NCWC -1,763,000
EBIT -12,350,000
Tax Provision 402,000
Depreciation and Amortization 3,715,000
Capital Expenditure -4,117,000
Unlevered Free Cash Flow -14,515,000
Current Assets 98,018,000
Current Cash 72,075,000
Current Liabilities 29,568,000
Current Debt 2,000
Non-Cash Working Capital (NCWC) -3,623,000
Change in NCWC -5,058,000
EBIT -12,908,000
Tax Provision 341,000
Depreciation and Amortization 3,531,000
Capital Expenditure -5,445,000
Unlevered Free Cash Flow -19,880,000

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