DCF Tool

NVEC

NVE Corp – Semiconductor and Related Device Manufacturing
NVE is a leader in the practical commercialization of spintronics, a nanotechnology that relies on electron spin rather than electron charge to acquire, store and transmit information. The company manufactures high-performance spintronic products including sensors and couplers that are used to acquire and transmit data.
Analysis Results
Intrinsic Value $61.30
Latest Price $64.23
Relative Value 5% overvalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 4.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.3%, 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)
2023 15.9 14.8
2024 16.6 14.4
2025 17.4 14.0
2026 18.1 13.5
2027 18.9 13.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 349 million. This corresponds to a present value of 226 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 69.9 million. Adding in the terminal value gives a total present value of 296 million.

There are presently 4.83 million outstanding shares, so the intrinsic value per share is 61.3.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 41,503,177
Current Cash 31,289,193
Current Liabilities 2,456,345
Current Debt 0
Non-Cash Working Capital (NCWC) 7,757,639
Change in NCWC 2,528,641
EBIT 16,328,685
Tax Provision 2,992,312
Depreciation and Amortization 424,981
Capital Expenditure -484,579
Unlevered Free Cash Flow 16,005,668
Current Assets 24,362,633
Current Cash 18,106,297
Current Liabilities 1,027,338
Current Debt 0
Non-Cash Working Capital (NCWC) 5,228,998
Change in NCWC -1,209,104
EBIT 12,743,604
Tax Provision 2,547,368
Depreciation and Amortization 542,926
Capital Expenditure -62,727
Unlevered Free Cash Flow 9,735,299
Current Assets 34,384,711
Current Cash 27,150,408
Current Liabilities 796,201
Current Debt 0
Non-Cash Working Capital (NCWC) 6,438,102
Change in NCWC -802,781
EBIT 15,514,786
Tax Provision 2,775,261
Depreciation and Amortization 549,969
Capital Expenditure -52,041
Unlevered Free Cash Flow 12,721,329
Current Assets 27,441,684
Current Cash 19,365,125
Current Liabilities 835,676
Current Debt 0
Non-Cash Working Capital (NCWC) 7,240,883
Change in NCWC 1,056,230
EBIT 15,924,562
Tax Provision 3,201,903
Depreciation and Amortization 705,197
Capital Expenditure -68,265
Unlevered Free Cash Flow 14,738,595
Current Assets 32,695,269
Current Cash 25,520,891
Current Liabilities 989,725
Current Debt 0
Non-Cash Working Capital (NCWC) 6,184,653
Change in NCWC -122,409
EBIT 18,450,627
Tax Provision 6,096,152
Depreciation and Amortization 979,652
Capital Expenditure -604,800
Unlevered Free Cash Flow 13,081,658
Current Assets 35,193,580
Current Cash 27,791,197
Current Liabilities 1,095,321
Current Debt 0
Non-Cash Working Capital (NCWC) 6,307,062
Change in NCWC 1,712,688
EBIT 17,445,203
Tax Provision 6,147,142
Depreciation and Amortization 1,147,451
Capital Expenditure -519,835
Unlevered Free Cash Flow 14,169,771
Current Assets 33,415,820
Current Cash 27,231,977
Current Liabilities 1,589,469
Current Debt 0
Non-Cash Working Capital (NCWC) 4,594,374
Change in NCWC -1,303,103
EBIT 16,286,280
Tax Provision 5,884,782
Depreciation and Amortization 850,970
Capital Expenditure -287,275
Unlevered Free Cash Flow 10,274,236
Current Assets 36,919,981
Current Cash 29,536,550
Current Liabilities 1,485,954
Current Debt 0
Non-Cash Working Capital (NCWC) 5,897,477
Change in NCWC 487,709
EBIT 19,251,951
Tax Provision 7,071,320
Depreciation and Amortization 934,371
Capital Expenditure -185,007
Unlevered Free Cash Flow 14,139,267
Current Assets 20,214,961
Current Cash 13,622,391
Current Liabilities 1,182,802
Current Debt 0
Non-Cash Working Capital (NCWC) 5,409,768
Change in NCWC 374,522
EBIT 14,393,816
Tax Provision 5,380,074
Depreciation and Amortization 844,339
Capital Expenditure -160,718
Unlevered Free Cash Flow 10,763,170
Current Assets 19,036,846
Current Cash 12,220,712
Current Liabilities 1,780,888
Current Debt 0
Non-Cash Working Capital (NCWC) 5,035,246
Change in NCWC -370,917
EBIT 15,196,854
Tax Provision 5,727,619
Depreciation and Amortization 647,163
Capital Expenditure -1,824,324
Unlevered Free Cash Flow 8,690,953

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.