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OSI Systems, Inc. – Semiconductor and Related Device Manufacturing
OSI Systems is a vertically integrated designer and manufacturer of specialized electronic systems and components for critical applications in the homeland security, healthcare, defense and aerospace industries. The Company combines more than 40 years of electronics engineering and manufacturing experience with offices and production facilities in more than a dozen countries to implement a strategy of expansion into selective end product markets.
Analysis Results
Intrinsic Value $757.37
Latest Price $98.81
Relative Value 87% undervalued
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Cash Flow (Millions)
Analysis Parameters
New Ticker
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 18.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 2.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.8%, 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 223 217
2024 265 250
2025 314 290
2026 373 335
2027 444 387
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 13300 million. This corresponds to a present value of 11300 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1480 million. Adding in the terminal value gives a total present value of 12800 million.

There are presently 16.9 million outstanding shares, so the intrinsic value per share is 757.37.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 746,144,000
Current Cash 64,202,000
Current Liabilities 613,954,000
Current Debt 304,575,000
Non-Cash Working Capital (NCWC) 372,563,000
Change in NCWC 87,693,000
EBIT 129,291,000
Tax Provision 24,813,000
Depreciation and Amortization 38,679,000
Capital Expenditure -30,487,000
Unlevered Free Cash Flow 202,287,175
Current Assets 709,404,000
Current Cash 80,613,000
Current Liabilities 344,767,000
Current Debt 846,000
Non-Cash Working Capital (NCWC) 284,870,000
Change in NCWC 13,438,000
EBIT 125,475,000
Tax Provision 24,591,000
Depreciation and Amortization 43,855,000
Capital Expenditure -29,511,000
Unlevered Free Cash Flow 121,976,021
Current Assets 617,709,000
Current Cash 76,102,000
Current Liabilities 330,101,000
Current Debt 59,926,000
Non-Cash Working Capital (NCWC) 271,432,000
Change in NCWC 20,053,000
EBIT 111,370,000
Tax Provision 10,870,000
Depreciation and Amortization 49,758,000
Capital Expenditure -33,747,000
Unlevered Free Cash Flow 133,377,290
Current Assets 640,899,000
Current Cash 96,316,000
Current Liabilities 382,008,000
Current Debt 88,804,000
Non-Cash Working Capital (NCWC) 251,379,000
Change in NCWC 13,556,000
EBIT 111,601,000
Tax Provision 21,368,000
Depreciation and Amortization 56,234,000
Capital Expenditure -30,215,000
Unlevered Free Cash Flow 123,499,822
Current Assets 650,697,000
Current Cash 84,814,000
Current Liabilities 443,322,000
Current Debt 115,262,000
Non-Cash Working Capital (NCWC) 237,823,000
Change in NCWC -4,789,000
EBIT 90,871,000
Tax Provision 65,981,000
Depreciation and Amortization 69,754,000
Capital Expenditure -45,651,000
Unlevered Free Cash Flow 44,204,000
Current Assets 653,000,000
Current Cash 169,650,000
Current Liabilities 346,134,000
Current Debt 105,396,000
Non-Cash Working Capital (NCWC) 242,612,000
Change in NCWC 31,740,000
EBIT 79,990,000
Tax Provision 4,675,000
Depreciation and Amortization 68,235,000
Capital Expenditure -22,243,000
Unlevered Free Cash Flow 143,200,107
Current Assets 555,318,000
Current Cash 104,370,000
Current Liabilities 367,835,000
Current Debt 127,759,000
Non-Cash Working Capital (NCWC) 210,872,000
Change in NCWC -36,576,000
EBIT 60,388,000
Tax Provision 9,338,000
Depreciation and Amortization 57,922,000
Capital Expenditure -23,558,000
Unlevered Free Cash Flow 42,289,166
Current Assets 541,521,000
Current Cash 47,593,000
Current Liabilities 249,281,000
Current Debt 2,801,000
Non-Cash Working Capital (NCWC) 247,448,000
Change in NCWC -9,791,000
EBIT 101,958,000
Tax Provision 23,702,000
Depreciation and Amortization 58,976,000
Capital Expenditure -15,286,000
Unlevered Free Cash Flow 108,659,173
Current Assets 579,230,000
Current Cash 38,831,000
Current Liabilities 309,979,000
Current Debt 26,819,000
Non-Cash Working Capital (NCWC) 257,239,000
Change in NCWC -14,147,000
EBIT 93,339,000
Tax Provision 27,961,000
Depreciation and Amortization 54,239,000
Capital Expenditure -60,494,000
Unlevered Free Cash Flow 38,531,202
Current Assets 526,699,000
Current Cash 34,697,000
Current Liabilities 281,413,000
Current Debt 60,797,000
Non-Cash Working Capital (NCWC) 271,386,000
Change in NCWC 40,374,000
EBIT 82,425,000
Tax Provision 25,279,000
Depreciation and Amortization 27,507,000
Capital Expenditure -161,766,000
Unlevered Free Cash Flow -41,477,310
Current Assets 483,113,000
Current Cash 91,452,000
Current Liabilities 160,649,000
Current Debt 0
Non-Cash Working Capital (NCWC) 231,012,000
Change in NCWC 42,105,000
EBIT 67,331,000
Tax Provision 16,435,000
Depreciation and Amortization 20,199,000
Capital Expenditure -73,193,000
Unlevered Free Cash Flow 38,588,959

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