DCF Tool

RMBS

Rambus Inc. – Semiconductor and Related Device Manufacturing
Rambus is a provider of industry-leading chips and silicon IP making data faster and safer. With over 30 years of advanced semiconductor experience, it is a pioneer in high-performance memory subsystems that solve the bottleneck between memory and processing for data-intensive systems. Whether in the cloud, at the edge or in your hand, real-time and immersive applications depend on data throughput and integrity. Rambus products and innovations deliver the increased bandwidth, capacity and security required to meet the world's data needs and drive ever-greater end-user experiences.
Analysis Results
Intrinsic Value $2.11
Latest Price $26.06
Relative Value 1136% 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 -10.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -10.6%, 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 32.7 29.6
2023 29.3 23.9
2024 26.2 19.3
2025 23.4 15.5
2026 20.9 12.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 244 million. This corresponds to a present value of 132 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 101 million. Adding in the terminal value gives a total present value of 233 million.

There are presently 111.0 million outstanding shares, so the intrinsic value per share is 2.11.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 684,364,000
Current Cash 485,609,000
Current Liabilities 267,267,000
Current Debt 163,687,000
Non-Cash Working Capital (NCWC) 95,175,000
Change in NCWC -16,024,000
EBIT 29,949,000
Tax Provision 4,952,000
Depreciation and Amortization 44,277,000
Capital Expenditure -13,792,000
Unlevered Free Cash Flow 38,041,046
Current Assets 699,712,000
Current Cash 502,649,000
Current Liabilities 85,864,000
Current Debt 0
Non-Cash Working Capital (NCWC) 111,199,000
Change in NCWC -59,637,000
EBIT -41,765,000
Tax Provision 3,932,000
Depreciation and Amortization 48,186,000
Capital Expenditure -29,728,000
Unlevered Free Cash Flow -82,944,000
Current Assets 664,679,000
Current Cash 407,664,000
Current Liabilities 86,179,000
Current Debt 0
Non-Cash Working Capital (NCWC) 170,836,000
Change in NCWC -9,865,000
EBIT -88,279,000
Tax Provision 3,403,000
Depreciation and Amortization 40,565,000
Capital Expenditure -6,472,000
Unlevered Free Cash Flow -64,051,000
Current Assets 527,750,000
Current Cash 277,764,000
Current Liabilities 69,285,000
Current Debt 0
Non-Cash Working Capital (NCWC) 180,701,000
Change in NCWC 192,724,000
EBIT -84,750,000
Tax Provision 87,329,000
Depreciation and Amortization 40,086,000
Capital Expenditure -11,112,000
Unlevered Free Cash Flow 136,948,000
Current Assets 371,744,000
Current Cash 329,376,000
Current Liabilities 132,842,000
Current Debt 78,451,000
Non-Cash Working Capital (NCWC) -12,023,000
Change in NCWC -5,321,000
EBIT 53,874,000
Tax Provision 63,851,000
Depreciation and Amortization 55,237,000
Capital Expenditure -9,505,000
Unlevered Free Cash Flow 30,434,000
Current Assets 216,781,000
Current Cash 172,182,000
Current Liabilities 51,301,000
Current Debt 0
Non-Cash Working Capital (NCWC) -6,702,000
Change in NCWC -6,220,000
EBIT 44,518,000
Tax Provision 15,817,000
Depreciation and Amortization 50,103,000
Capital Expenditure -8,556,000
Unlevered Free Cash Flow 48,739,234
Current Assets 315,590,000
Current Cash 287,706,000
Current Liabilities 28,366,000
Current Debt 0
Non-Cash Working Capital (NCWC) -482,000
Change in NCWC 19,447,000
EBIT 69,270,000
Tax Provision -151,157,000
Depreciation and Amortization 37,453,000
Capital Expenditure -6,132,000
Unlevered Free Cash Flow 120,038,000
Current Assets 314,838,000
Current Cash 300,109,000
Current Liabilities 34,658,000
Current Debt 0
Non-Cash Working Capital (NCWC) -19,929,000
Change in NCWC 18,157,000
EBIT 69,816,000
Tax Provision 24,049,000
Depreciation and Amortization 40,243,000
Capital Expenditure -7,204,000
Unlevered Free Cash Flow 87,598,965
Current Assets 398,371,000
Current Cash 387,662,000
Current Liabilities 212,842,000
Current Debt 164,047,000
Non-Cash Working Capital (NCWC) -38,086,000
Change in NCWC 4,202,000
EBIT 43,857,000
Tax Provision 21,731,000
Depreciation and Amortization 44,360,000
Capital Expenditure -9,594,000
Unlevered Free Cash Flow 82,825,000

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