DCF Tool

POWI

Power Integrations Inc. – Semiconductor and Related Device Manufacturing
power integrations, inc., is a silicon valley-based supplier of high-performance electronic components used in high-voltage power-conversion systems. our integrated circuits and diodes enable compact, energy-efficient ac-dc power supplies for a vast range of electronic products including mobile devices, tvs, pcs, appliances, smart utility meters and led lights. our scale™ igbt drivers enhance the efficiency, reliability and cost of high-power applications such as industrial motor drives, solar and wind energy systems, electric vehicles and high-voltage dc transmission. since its introduction in 1998, power integrations'​ ecosmart® energy-efficiency technology has prevented billions of dollars'​ worth of energy waste and millions of tons of carbon emissions. reflecting the environmental benefits of our products, power integrations'​ stock is a member of clean-technology stock indices sponsored by cleantech group llc and clean edge. visit our green room for a comprehensive guide to energ
Analysis Results
Intrinsic Value $292.13
Latest Price $77.62
Relative Value 73% undervalued
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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 27.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.3%. 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 237 227
2024 303 279
2025 388 342
2026 496 420
2027 635 515
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 14800 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1780 million. Adding in the terminal value gives a total present value of 16600 million.

There are presently 56.9 million outstanding shares, so the intrinsic value per share is 292.13.

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

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