DCF Tool

STM

ST Microelectronics – Semiconductor and Related Device Manufacturing
Analysis Results
Intrinsic Value $21.56
Latest Price $37.80
Relative Value 75% overvalued
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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 22.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.0%, 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)
2022 1.14 1.02
2023 1.39 1.12
2024 1.7 1.22
2025 2.08 1.33
2026 2.53 1.45
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 26.4 billion. This corresponds to a present value of 13.5 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 6.13 billion. Adding in the terminal value gives a total present value of 19.6 billion.

There are presently 911.0 million outstanding shares, so the intrinsic value per share is 21.56.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 7,828,000,000
Current Cash 3,516,000,000
Current Liabilities 2,949,000,000
Current Debt 143,000,000
Non-Cash Working Capital (NCWC) 1,506,000,000
Change in NCWC -126,000,000
EBIT 2,270,000,000
Tax Provision 331,000,000
Depreciation and Amortization 1,045,000,000
Capital Expenditure -1,927,000,000
Unlevered Free Cash Flow 940,489,516
Current Assets 7,610,000,000
Current Cash 3,720,000,000
Current Liabilities 3,053,000,000
Current Debt 795,000,000
Non-Cash Working Capital (NCWC) 1,632,000,000
Change in NCWC -55,000,000
EBIT 1,354,000,000
Tax Provision 159,000,000
Depreciation and Amortization 923,000,000
Capital Expenditure -1,358,000,000
Unlevered Free Cash Flow 694,082,083
Current Assets 6,257,000,000
Current Cash 2,734,000,000
Current Liabilities 2,064,000,000
Current Debt 228,000,000
Non-Cash Working Capital (NCWC) 1,687,000,000
Change in NCWC 403,000,000
EBIT 1,237,000,000
Tax Provision 156,000,000
Depreciation and Amortization 854,000,000
Capital Expenditure -1,250,000,000
Unlevered Free Cash Flow 1,081,702,270
Current Assets 5,854,000,000
Current Cash 2,596,000,000
Current Liabilities 2,120,000,000
Current Debt 146,000,000
Non-Cash Working Capital (NCWC) 1,284,000,000
Change in NCWC 277,000,000
EBIT 1,420,000,000
Tax Provision 96,000,000
Depreciation and Amortization 791,000,000
Capital Expenditure -1,313,000,000
Unlevered Free Cash Flow 1,076,857,451
Current Assets 5,099,000,000
Current Cash 2,190,000,000
Current Liabilities 2,020,000,000
Current Debt 118,000,000
Non-Cash Working Capital (NCWC) 1,007,000,000
Change in NCWC -40,000,000
EBIT 1,036,000,000
Tax Provision 143,000,000
Depreciation and Amortization 650,000,000
Capital Expenditure -1,372,000,000
Unlevered Free Cash Flow 118,545,645
Current Assets 4,482,000,000
Current Cash 1,964,000,000
Current Liabilities 1,588,000,000
Current Debt 117,000,000
Non-Cash Working Capital (NCWC) 1,047,000,000
Change in NCWC -158,000,000
EBIT 309,000,000
Tax Provision 31,000,000
Depreciation and Amortization 696,000,000
Capital Expenditure -653,000,000
Unlevered Free Cash Flow 146,343,283
Current Assets 4,680,000,000
Current Cash 2,106,000,000
Current Liabilities 1,560,000,000
Current Debt 191,000,000
Non-Cash Working Capital (NCWC) 1,205,000,000
Change in NCWC 69,000,000
EBIT 161,000,000
Tax Provision -21,000,000
Depreciation and Amortization 736,000,000
Capital Expenditure -565,000,000
Unlevered Free Cash Flow 401,000,000
Current Assets 5,051,000,000
Current Cash 2,351,000,000
Current Liabilities 1,766,000,000
Current Debt 202,000,000
Non-Cash Working Capital (NCWC) 1,136,000,000
Change in NCWC -9,000,000
EBIT 203,000,000
Tax Provision -23,000,000
Depreciation and Amortization 811,000,000
Capital Expenditure -563,000,000
Unlevered Free Cash Flow 442,000,000
Current Assets 4,807,000,000
Current Cash 1,894,000,000
Current Liabilities 1,993,000,000
Current Debt 225,000,000
Non-Cash Working Capital (NCWC) 1,145,000,000
Change in NCWC 57,000,000
EBIT -382,000,000
Tax Provision 37,000,000
Depreciation and Amortization 910,000,000
Capital Expenditure -543,000,000
Unlevered Free Cash Flow 42,000,000
Current Assets 5,502,000,000
Current Cash 2,489,000,000
Current Liabilities 2,555,000,000
Current Debt 630,000,000
Non-Cash Working Capital (NCWC) 1,088,000,000
Change in NCWC -338,000,000
EBIT -743,000,000
Tax Provision 51,000,000
Depreciation and Amortization 1,107,000,000
Capital Expenditure -609,000,000
Unlevered Free Cash Flow -583,000,000

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