DCF Tool

POWI

Power Integrations Inc. – Semiconductor and Related Device Manufacturing
Power Integrations, Inc. is a leading innovator in semiconductor technologies for high-voltage power-conversion. The company's products are key building blocks in the clean-power ecosystem, enabling the generation of renewable energy as well as the efficient transmission and consumption of power in applications ranging from milliwatts to megawatts.
Analysis Results
Intrinsic Value $305.96
Latest Price $84.64
Relative Value 72% undervalued
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 27.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 27.9%, 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 237 229
2024 303 284
2025 388 351
2026 496 434
2027 635 538
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 19100 million. This corresponds to a present value of 15600 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1840 million. Adding in the terminal value gives a total present value of 17400 million.

There are presently 57.0 million outstanding shares, so the intrinsic value per share is 305.96.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 525,073,000
Current Cash 353,813,000
Current Liabilities 58,376,000
Current Debt 0
Non-Cash Working Capital (NCWC) 112,884,000
Change in NCWC 28,742,000
EBIT 181,542,000
Tax Provision 12,575,000
Depreciation and Amortization 37,345,000
Capital Expenditure -39,211,000
Unlevered Free Cash Flow 195,972,159
Current Assets 686,815,000
Current Cash 530,352,000
Current Liabilities 72,321,000
Current Debt 0
Non-Cash Working Capital (NCWC) 84,142,000
Change in NCWC -5,372,000
EBIT 175,058,000
Tax Provision 11,722,000
Depreciation and Amortization 34,948,000
Capital Expenditure -47,272,000
Unlevered Free Cash Flow 145,711,675
Current Assets 601,232,000
Current Cash 449,192,000
Current Liabilities 62,526,000
Current Debt 0
Non-Cash Working Capital (NCWC) 89,514,000
Change in NCWC 9,739,000
EBIT 70,487,000
Tax Provision 4,075,000
Depreciation and Amortization 28,102,000
Capital Expenditure -70,598,000
Unlevered Free Cash Flow 33,912,980
Current Assets 541,339,000
Current Cash 411,088,000
Current Liabilities 50,476,000
Current Debt 0
Non-Cash Working Capital (NCWC) 79,775,000
Change in NCWC 24,297,000
EBIT 48,053,000
Tax Provision 28,946,000
Depreciation and Amortization 24,403,000
Capital Expenditure -24,114,000
Unlevered Free Cash Flow 66,385,157
Current Assets 332,432,000
Current Cash 228,588,000
Current Liabilities 48,366,000
Current Debt 0
Non-Cash Working Capital (NCWC) 55,478,000
Change in NCWC 24,886,000
EBIT 55,648,000
Tax Provision -10,220,000
Depreciation and Amortization 24,185,000
Capital Expenditure -25,577,000
Unlevered Free Cash Flow 79,142,000
Current Assets 364,534,000
Current Cash 282,891,000
Current Liabilities 51,051,000
Current Debt 0
Non-Cash Working Capital (NCWC) 30,592,000
Change in NCWC 22,400,000
EBIT 57,637,000
Tax Provision 32,690,000
Depreciation and Amortization 24,457,000
Capital Expenditure -32,496,000
Unlevered Free Cash Flow 40,751,154
Current Assets 318,502,000
Current Cash 250,457,000
Current Liabilities 59,853,000
Current Debt 0
Non-Cash Working Capital (NCWC) 8,192,000
Change in NCWC -6,357,000
EBIT 47,844,000
Tax Provision 1,032,000
Depreciation and Amortization 23,475,000
Capital Expenditure -12,198,000
Unlevered Free Cash Flow 51,754,740
Current Assets 240,403,000
Current Cash 173,861,000
Current Liabilities 51,993,000
Current Debt 0
Non-Cash Working Capital (NCWC) 14,549,000
Change in NCWC -20,920,000
EBIT 38,993,000
Tax Provision 271,000
Depreciation and Amortization 23,503,000
Capital Expenditure -11,359,000
Unlevered Free Cash Flow 29,948,921
Current Assets 265,912,000
Current Cash 175,283,000
Current Liabilities 55,160,000
Current Debt 0
Non-Cash Working Capital (NCWC) 35,469,000
Change in NCWC 10,572,000
EBIT 55,796,000
Tax Provision -2,730,000
Depreciation and Amortization 21,956,000
Capital Expenditure -23,071,000
Unlevered Free Cash Flow 65,253,000
Current Assets 277,422,000
Current Cash 202,107,000
Current Liabilities 50,418,000
Current Debt 0
Non-Cash Working Capital (NCWC) 24,897,000
Change in NCWC -4,240,000
EBIT 54,066,000
Tax Provision -1,839,000
Depreciation and Amortization 23,492,000
Capital Expenditure -13,960,000
Unlevered Free Cash Flow 59,358,000
Current Assets 164,864,000
Current Cash 95,160,000
Current Liabilities 40,567,000
Current Debt 0
Non-Cash Working Capital (NCWC) 29,137,000
Change in NCWC -7,598,000
EBIT 36,552,000
Tax Provision 13,622,000
Depreciation and Amortization 20,420,000
Capital Expenditure -16,358,000
Unlevered Free Cash Flow 33,016,000

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.