DCF Tool

QRVO

Qorvo Inc – Semiconductor and Related Device Manufacturing
Qorvo makes a better world possible by providing innovative Radio Frequency (RF) solutions at the center of connectivity. We combine product and technology leadership, systems-level expertise and global manufacturing scale to quickly solve our customers' most complex technical challenges. Qorvo serves diverse high-growth segments of large global markets, including advanced wireless devices, wired and wireless networks and defense radar and communications. Qorvo also leverages unique competitive strengths to advance 5G networks, cloud computing, the Internet of Things, and other emerging applications that expand the global framework interconnecting people, places and things.
Analysis Results
Intrinsic Value $889.94
Latest Price $79.41
Relative Value 91% undervalued
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Cash Flow (Billions)
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 43.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 43.5%, 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 (billion) Present value (billion)
2023 2.26 2.06
2024 3.24 2.69
2025 4.65 3.52
2026 6.67 4.61
2027 9.57 6.03
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 127 billion. This corresponds to a present value of 72.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 18.9 billion. Adding in the terminal value gives a total present value of 91.8 billion.

There are presently 103.0 million outstanding shares, so the intrinsic value per share is 889.94.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,449,865,000
Current Cash 972,592,000
Current Liabilities 675,127,000
Current Debt 0
Non-Cash Working Capital (NCWC) 802,146,000
Change in NCWC 392,711,000
EBIT 1,226,069,000
Tax Provision 147,731,000
Depreciation and Amortization 361,415,000
Capital Expenditure -213,466,000
Unlevered Free Cash Flow 1,613,371,237
Current Assets 2,483,804,000
Current Cash 1,397,880,000
Current Liabilities 681,581,000
Current Debt 5,092,000
Non-Cash Working Capital (NCWC) 409,435,000
Change in NCWC -34,018,000
EBIT 906,627,000
Tax Provision 73,769,000
Depreciation and Amortization 456,104,000
Capital Expenditure -186,960,000
Unlevered Free Cash Flow 1,058,915,962
Current Assets 1,690,502,000
Current Cash 714,939,000
Current Liabilities 539,003,000
Current Debt 6,893,000
Non-Cash Working Capital (NCWC) 443,453,000
Change in NCWC -94,739,000
EBIT 423,216,000
Tax Provision 60,764,000
Depreciation and Amortization 468,931,000
Capital Expenditure -164,104,000
Unlevered Free Cash Flow 568,214,116
Current Assets 1,684,841,000
Current Cash 711,035,000
Current Liabilities 435,614,000
Current Debt 0
Non-Cash Working Capital (NCWC) 538,192,000
Change in NCWC 61,703,000
EBIT 216,466,000
Tax Provision -41,333,000
Depreciation and Amortization 663,097,000
Capital Expenditure -220,937,000
Unlevered Free Cash Flow 720,329,000
Current Assets 1,843,805,000
Current Cash 926,037,000
Current Liabilities 441,279,000
Current Debt 0
Non-Cash Working Capital (NCWC) 476,489,000
Change in NCWC -20,825,000
EBIT 70,282,000
Tax Provision 57,433,000
Depreciation and Amortization 714,215,000
Capital Expenditure -269,835,000
Unlevered Free Cash Flow 436,404,000
Current Assets 1,461,605,000
Current Cash 545,463,000
Current Liabilities 418,828,000
Current Debt 0
Non-Cash Working Capital (NCWC) 497,314,000
Change in NCWC -25,406,000
EBIT 88,059,000
Tax Provision 43,863,000
Depreciation and Amortization 704,577,000
Capital Expenditure -552,702,000
Unlevered Free Cash Flow 170,665,000
Current Assets 1,509,210,000
Current Cash 612,689,000
Current Liabilities 373,801,000
Current Debt 0
Non-Cash Working Capital (NCWC) 522,720,000
Change in NCWC -107,431,000
EBIT 11,968,000
Tax Provision 25,983,000
Depreciation and Amortization 674,951,000
Capital Expenditure -315,624,000
Unlevered Free Cash Flow 263,864,000

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