DCF Tool

SIMO

Silicon Motion Technology Corp – Semiconductor and Related Device Manufacturing
silicon motion is a global leader and pioneer in developing microcontroller ics for nand flash storage devices and specialty rf ics for mobile devices. our products are widely used in many of the leading smartphones and other mobile devices in the market today. more nand flash products, especially next generation flash, whether produced by samsung, toshiba, sandisk, sk hynix, micron or intel, are supported by silicon motion controllers than any other company. silicon motion leads the industry in supplying innovative controllers for managing the most advanced process geometry nand flash and the latest generation tlc (3-bits per cell) flash. we are a leader in emmc controllers for smartphones and tablets and in memory card and usb flash drive controllers, and increasingly we are focused on client ssd controllers for notebook pcs and other applications. also, silicon motion is a dedicated provider of 4g lte transceivers for smartphones and tablets and is a leading provider of mobile tv so
Analysis Results
Intrinsic Value $812.21
Latest Price $75.28
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 51.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 51.3%, 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 0.534 0.487
2024 0.808 0.673
2025 1.22 0.929
2026 1.85 1.28
2027 2.8 1.77
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 37.6 billion. This corresponds to a present value of 21.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.14 billion. Adding in the terminal value gives a total present value of 26.8 billion.

There are presently 33.1 million outstanding shares, so the intrinsic value per share is 812.21.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 787,922,000
Current Cash 232,179,000
Current Liabilities 183,868,000
Current Debt 0
Non-Cash Working Capital (NCWC) 371,875,000
Change in NCWC 195,364,000
EBIT 214,315,000
Tax Provision 40,068,000
Depreciation and Amortization 18,931,000
Capital Expenditure -32,942,000
Unlevered Free Cash Flow 355,272,599
Current Assets 818,112,000
Current Cash 360,082,000
Current Liabilities 281,519,000
Current Debt 0
Non-Cash Working Capital (NCWC) 176,511,000
Change in NCWC 60,123,000
EBIT 245,869,000
Tax Provision 47,262,000
Depreciation and Amortization 17,160,000
Capital Expenditure -24,657,000
Unlevered Free Cash Flow 251,499,640
Current Assets 618,093,000
Current Cash 342,961,000
Current Liabilities 158,744,000
Current Debt 0
Non-Cash Working Capital (NCWC) 116,388,000
Change in NCWC 7,853,000
EBIT 97,963,000
Tax Provision 5,812,000
Depreciation and Amortization 13,562,000
Capital Expenditure -19,545,000
Unlevered Free Cash Flow 93,178,321
Current Assets 565,199,000
Current Cash 325,176,000
Current Liabilities 131,488,000
Current Debt 0
Non-Cash Working Capital (NCWC) 108,535,000
Change in NCWC 11,975,000
EBIT 68,115,000
Tax Provision 7,676,000
Depreciation and Amortization 13,213,000
Capital Expenditure -11,015,000
Unlevered Free Cash Flow 75,033,640
Current Assets 498,490,000
Current Cash 288,598,000
Current Liabilities 113,651,000
Current Debt 319,000
Non-Cash Working Capital (NCWC) 96,560,000
Change in NCWC 45,835,000
EBIT 108,430,000
Tax Provision 11,791,000
Depreciation and Amortization 14,796,000
Capital Expenditure -74,853,000
Unlevered Free Cash Flow 82,570,584
Current Assets 568,797,000
Current Cash 366,394,000
Current Liabilities 177,244,000
Current Debt 25,566,000
Non-Cash Working Capital (NCWC) 50,725,000
Change in NCWC -27,644,000
EBIT 103,806,000
Tax Provision 24,046,000
Depreciation and Amortization 13,133,000
Capital Expenditure -11,683,000
Unlevered Free Cash Flow 52,398,930
Current Assets 476,900,000
Current Cash 277,785,000
Current Liabilities 145,986,000
Current Debt 25,240,000
Non-Cash Working Capital (NCWC) 78,369,000
Change in NCWC 36,410,000
EBIT 137,260,000
Tax Provision 27,690,000
Depreciation and Amortization 11,585,000
Capital Expenditure -12,220,000
Unlevered Free Cash Flow 145,618,644
Current Assets 315,176,000
Current Cash 185,200,000
Current Liabilities 88,287,000
Current Debt 270,000
Non-Cash Working Capital (NCWC) 41,959,000
Change in NCWC 2,409,000
EBIT 76,433,000
Tax Provision 18,249,000
Depreciation and Amortization 8,987,000
Capital Expenditure -23,664,000
Unlevered Free Cash Flow 46,396,518
Current Assets 290,440,000
Current Cash 194,914,000
Current Liabilities 56,454,000
Current Debt 478,000
Non-Cash Working Capital (NCWC) 39,550,000
Change in NCWC -4,067,000
EBIT 59,070,000
Tax Provision 16,101,000
Depreciation and Amortization 6,917,000
Capital Expenditure -11,596,000
Unlevered Free Cash Flow 34,621,218

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