DCF Tool

NVMI

Nova Ltd – Optical Instrument and Lens Manufacturing
Nova Ltd. is a leading innovator and key provider of metrology solutions for advanced process control used in semiconductor manufacturing. Nova delivers continuous innovation by providing state-of-the-art high- performance metrology solutions for effective process control throughout the semiconductor fabrication lifecycle. Nova's product portfolio, which combines high- precision hardware and cutting-edge software, provides its customers with deep insight into the development and production of the most advanced semiconductor devices. Nova's unique capability to deliver innovative X-ray and Optical solutions enable its customers to improve performance, enhance product yields and accelerate time to market. Nova acts as a partner to semiconductor manufacturers from its offices around the world.
Analysis Results
Intrinsic Value $55.71
Latest Price $82.98
Relative Value 49% 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 20.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 20.0%, 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 86.8 78.4
2023 104 84.9
2024 125 92.0
2025 150 99.7
2026 180 108
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2100 million. This corresponds to a present value of 1130 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 463 million. Adding in the terminal value gives a total present value of 1600 million.

There are presently 28.7 million outstanding shares, so the intrinsic value per share is 55.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 566,516,000
Current Cash 410,163,000
Current Liabilities 287,930,000
Current Debt 183,037,000
Non-Cash Working Capital (NCWC) 51,460,000
Change in NCWC -22,436,000
EBIT 112,386,000
Tax Provision 16,152,000
Depreciation and Amortization 8,933,000
Capital Expenditure -4,816,000
Unlevered Free Cash Flow 77,451,816
Current Assets 558,701,000
Current Cash 423,871,000
Current Liabilities 60,934,000
Current Debt 0
Non-Cash Working Capital (NCWC) 73,896,000
Change in NCWC 4,195,000
EBIT 55,570,000
Tax Provision 8,589,000
Depreciation and Amortization 8,378,000
Capital Expenditure -6,443,000
Unlevered Free Cash Flow 53,251,778
Current Assets 302,931,000
Current Cash 186,281,000
Current Liabilities 46,949,000
Current Debt 0
Non-Cash Working Capital (NCWC) 69,701,000
Change in NCWC 12,030,000
EBIT 36,408,000
Tax Provision 4,315,000
Depreciation and Amortization 10,398,000
Capital Expenditure -21,269,000
Unlevered Free Cash Flow 33,588,361
Current Assets 281,577,000
Current Cash 175,828,000
Current Liabilities 48,078,000
Current Debt 0
Non-Cash Working Capital (NCWC) 57,671,000
Change in NCWC 26,976,000
EBIT 60,442,000
Tax Provision 9,051,000
Depreciation and Amortization 7,684,000
Capital Expenditure -3,678,000
Unlevered Free Cash Flow 82,798,821
Current Assets 231,908,000
Current Cash 149,087,000
Current Liabilities 52,126,000
Current Debt 0
Non-Cash Working Capital (NCWC) 30,695,000
Change in NCWC -6,995,000
EBIT 57,819,000
Tax Provision 13,636,000
Depreciation and Amortization 6,179,000
Capital Expenditure -6,295,000
Unlevered Free Cash Flow 37,588,441
Current Assets 167,676,000
Current Cash 90,952,000
Current Liabilities 39,034,000
Current Debt 0
Non-Cash Working Capital (NCWC) 37,690,000
Change in NCWC 21,902,000
EBIT 23,041,000
Tax Provision 1,738,000
Depreciation and Amortization 6,594,000
Capital Expenditure -3,133,000
Unlevered Free Cash Flow 44,885,702
Current Assets 149,977,000
Current Cash 97,031,000
Current Liabilities 37,158,000
Current Debt 0
Non-Cash Working Capital (NCWC) 15,788,000
Change in NCWC 8,241,000
EBIT 11,581,000
Tax Provision -3,501,000
Depreciation and Amortization 9,620,000
Capital Expenditure -4,373,000
Unlevered Free Cash Flow 25,069,000
Current Assets 157,676,000
Current Cash 122,933,000
Current Liabilities 27,196,000
Current Debt 0
Non-Cash Working Capital (NCWC) 7,547,000
Change in NCWC -12,110,000
EBIT 16,911,000
Tax Provision -1,178,000
Depreciation and Amortization 3,951,000
Capital Expenditure -5,234,000
Unlevered Free Cash Flow 3,518,000
Current Assets 149,063,000
Current Cash 98,939,000
Current Liabilities 30,467,000
Current Debt 0
Non-Cash Working Capital (NCWC) 19,657,000
Change in NCWC 4,107,000
EBIT 12,333,000
Tax Provision 2,511,000
Depreciation and Amortization 3,522,000
Capital Expenditure -4,119,000
Unlevered Free Cash Flow 13,465,588
Current Assets 130,590,000
Current Cash 91,002,000
Current Liabilities 24,038,000
Current Debt 0
Non-Cash Working Capital (NCWC) 15,550,000
Change in NCWC 7,426,000
EBIT 10,584,000
Tax Provision 124,000
Depreciation and Amortization 2,783,000
Capital Expenditure -3,660,000
Unlevered Free Cash Flow 17,023,192

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.