DCF Tool

OLED

Universal Display Corp. – Semiconductor and Related Device Manufacturing
Universal Display Corporation is a leader in the research, development and commercialization of organic light emitting diode (OLED) technologies and materials for use in display, solid-state lighting applications with subsidiaries and offices around the world. Founded in 1994, the Company currently owns, exclusively licenses or has the sole right to sublicense more than 5,000 patents issued and pending worldwide. Universal Display licenses its proprietary technologies, including its breakthrough high-efficiency UniversalPHOLED® phosphorescent OLED technology that can enable the development of energy-efficient and eco-friendly displays and solid-state lighting. The Company also develops and offers high-quality, state-of-the-art UniversalPHOLED materials that are recognized as key ingredients in the fabrication of OLEDs with peak performance. In addition, Universal Display delivers innovative and customized solutions to its clients and partners through technology transfer, collaborative technology development and on-site training.
Analysis Results
Intrinsic Value $75.70
Latest Price $102.22
Relative Value 35% 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 19.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 13.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.5%, 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 259 229
2023 309 241
2024 369 255
2025 441 269
2026 527 284
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4820 million. This corresponds to a present value of 2300 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1280 million. Adding in the terminal value gives a total present value of 3570 million.

There are presently 47.2 million outstanding shares, so the intrinsic value per share is 75.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 925,934,000
Current Cash 663,187,000
Current Liabilities 187,938,000
Current Debt 0
Non-Cash Working Capital (NCWC) 74,809,000
Change in NCWC 45,171,000
EBIT 227,644,000
Tax Provision 44,034,000
Depreciation and Amortization 41,962,000
Capital Expenditure -43,555,000
Unlevered Free Cash Flow 227,304,332
Current Assets 924,606,000
Current Cash 730,008,000
Current Liabilities 164,960,000
Current Debt 0
Non-Cash Working Capital (NCWC) 29,638,000
Change in NCWC 44,795,000
EBIT 157,526,000
Tax Provision 30,157,000
Depreciation and Amortization 37,186,000
Capital Expenditure -28,051,000
Unlevered Free Cash Flow 182,406,035
Current Assets 792,439,000
Current Cash 646,088,000
Current Liabilities 161,508,000
Current Debt 0
Non-Cash Working Capital (NCWC) -15,157,000
Change in NCWC -1,470,000
EBIT 158,343,000
Tax Provision 31,601,000
Depreciation and Amortization 34,418,000
Capital Expenditure -30,460,000
Unlevered Free Cash Flow 131,380,441
Current Assets 634,840,000
Current Cash 515,345,000
Current Liabilities 133,182,000
Current Debt 0
Non-Cash Working Capital (NCWC) -13,687,000
Change in NCWC -48,759,000
EBIT 56,735,000
Tax Provision 5,471,000
Depreciation and Amortization 30,574,000
Capital Expenditure -25,391,000
Unlevered Free Cash Flow 8,332,497
Current Assets 519,182,000
Current Cash 420,286,000
Current Liabilities 63,824,000
Current Debt 0
Non-Cash Working Capital (NCWC) 35,072,000
Change in NCWC 17,917,000
EBIT 146,247,000
Tax Provision 45,652,000
Depreciation and Amortization 26,902,000
Capital Expenditure -29,803,000
Unlevered Free Cash Flow 116,615,400
Current Assets 385,370,000
Current Cash 328,009,000
Current Liabilities 40,206,000
Current Debt 0
Non-Cash Working Capital (NCWC) 17,155,000
Change in NCWC -525,000
EBIT 68,413,000
Tax Provision 20,528,000
Depreciation and Amortization 20,762,000
Capital Expenditure -103,289,000
Unlevered Free Cash Flow -35,111,638
Current Assets 447,684,000
Current Cash 395,494,000
Current Liabilities 34,510,000
Current Debt 0
Non-Cash Working Capital (NCWC) 17,680,000
Change in NCWC -37,496,000
EBIT 32,276,000
Tax Provision 18,381,000
Depreciation and Amortization 14,085,000
Capital Expenditure -5,103,000
Unlevered Free Cash Flow -14,183,647
Current Assets 370,505,000
Current Cash 288,506,000
Current Liabilities 26,823,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,176,000
Change in NCWC 23,967,000
EBIT 58,620,000
Tax Provision 17,473,000
Depreciation and Amortization 13,074,000
Capital Expenditure -6,153,000
Unlevered Free Cash Flow 72,243,225
Current Assets 327,048,000
Current Cash 272,610,000
Current Liabilities 23,229,000
Current Debt 0
Non-Cash Working Capital (NCWC) 31,209,000
Change in NCWC 29,904,000
EBIT 38,244,000
Tax Provision -35,044,000
Depreciation and Amortization 13,017,000
Capital Expenditure -5,069,000
Unlevered Free Cash Flow 76,096,000
Current Assets 267,545,000
Current Cash 243,941,000
Current Liabilities 22,299,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,305,000
Change in NCWC 4,607,539
EBIT 13,676,000
Tax Provision 5,208,000
Depreciation and Amortization 6,847,000
Capital Expenditure -111,839,000
Unlevered Free Cash Flow -91,498,924

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