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Semtech Corp. – Semiconductor and Related Device Manufacturing
Semtech Corporation is a leading supplier of high performance analog and mixed-signal semiconductors and advanced algorithms for infrastructure, high-end consumer and industrial equipment. Products are designed to benefit the engineering community as well as the global community. The Company is dedicated to reducing the impact it, and its products, have on the environment. Internal green programs seek to reduce waste through material and manufacturing control, use of green technology and designing for resource reduction.
Analysis Results
Intrinsic Value $28.25
Latest Price $28.87
Relative Value 2% overvalued
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Cash Flow (Millions)
Analysis Parameters
New Ticker
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 10.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.2%, 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 131 119
2024 145 118
2025 160 117
2026 176 117
2027 194 116
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2250 million. This corresponds to a present value of 1220 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 587 million. Adding in the terminal value gives a total present value of 1800 million.

There are presently 63.8 million outstanding shares, so the intrinsic value per share is 28.25.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 502,295,000
Current Cash 279,601,000
Current Liabilities 128,399,000
Current Debt 0
Non-Cash Working Capital (NCWC) 94,295,000
Change in NCWC -1,969,000
EBIT 147,119,000
Tax Provision 15,539,000
Depreciation and Amortization 35,302,000
Capital Expenditure -26,181,000
Unlevered Free Cash Flow 138,078,781
Current Assets 474,728,000
Current Cash 268,891,000
Current Liabilities 109,573,000
Current Debt 0
Non-Cash Working Capital (NCWC) 96,264,000
Change in NCWC 27,493,000
EBIT 75,252,000
Tax Provision 3,437,000
Depreciation and Amortization 35,858,000
Capital Expenditure -32,734,000
Unlevered Free Cash Flow 101,783,300
Current Assets 460,736,000
Current Cash 293,324,000
Current Liabilities 98,641,000
Current Debt 0
Non-Cash Working Capital (NCWC) 68,771,000
Change in NCWC 7,232,000
EBIT 49,773,000
Tax Provision 12,828,000
Depreciation and Amortization 39,581,000
Capital Expenditure -23,056,000
Unlevered Free Cash Flow 59,244,233
Current Assets 485,304,000
Current Cash 312,120,000
Current Liabilities 129,914,000
Current Debt 18,269,000
Non-Cash Working Capital (NCWC) 61,539,000
Change in NCWC 19,028,000
EBIT 88,932,000
Tax Provision -84,000
Depreciation and Amortization 49,639,000
Capital Expenditure -17,052,000
Unlevered Free Cash Flow 140,547,000
Current Assets 461,232,000
Current Cash 307,923,000
Current Liabilities 126,208,000
Current Debt 15,410,000
Non-Cash Working Capital (NCWC) 42,511,000
Change in NCWC 9,760,000
EBIT 72,749,000
Tax Provision 23,191,000
Depreciation and Amortization 48,999,000
Capital Expenditure -35,461,000
Unlevered Free Cash Flow 67,747,654
Current Assets 438,428,000
Current Cash 297,134,000
Current Liabilities 122,975,000
Current Debt 14,432,000
Non-Cash Working Capital (NCWC) 32,751,000
Change in NCWC -11,342,000
EBIT 60,635,000
Tax Provision 18,399,000
Depreciation and Amortization 47,057,000
Capital Expenditure -32,920,000
Unlevered Free Cash Flow 48,160,038
Current Assets 341,221,000
Current Cash 211,810,000
Current Liabilities 103,887,000
Current Debt 18,569,000
Non-Cash Working Capital (NCWC) 44,093,000
Change in NCWC -32,773,000
EBIT 18,163,000
Tax Provision 8,882,000
Depreciation and Amortization 48,932,000
Capital Expenditure -13,026,000
Unlevered Free Cash Flow 13,379,823
Current Assets 396,688,000
Current Cash 230,328,000
Current Liabilities 108,041,000
Current Debt 18,547,000
Non-Cash Working Capital (NCWC) 76,866,000
Change in NCWC 18,825,000
EBIT 55,178,000
Tax Provision 8,548,000
Depreciation and Amortization 69,303,000
Capital Expenditure -32,855,000
Unlevered Free Cash Flow 97,526,995
Current Assets 393,596,000
Current Cash 243,194,000
Current Liabilities 110,890,000
Current Debt 18,529,000
Non-Cash Working Capital (NCWC) 58,041,000
Change in NCWC -10,554,000
EBIT 58,440,000
Tax Provision 35,985,000
Depreciation and Amortization 94,073,000
Capital Expenditure -40,694,000
Unlevered Free Cash Flow 101,265,000
Current Assets 405,993,000
Current Cash 228,165,000
Current Liabilities 157,682,000
Current Debt 48,449,000
Non-Cash Working Capital (NCWC) 68,595,000
Change in NCWC 18,408,000
EBIT 15,589,000
Tax Provision -41,690,000
Depreciation and Amortization 49,192,000
Capital Expenditure -24,517,000
Unlevered Free Cash Flow 58,672,000

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