DCF Tool

SWKS

Skyworks Solutions, Inc. – Semiconductor and Related Device Manufacturing
Skyworks Solutions, Inc. is empowering the wireless networking revolution. Its highly innovative analog semiconductors are connecting people, places and things spanning a number of new and previously unimagined applications within the aerospace, automotive, broadband, cellular infrastructure, connected home, industrial, medical, military, smartphone, tablet and wearable markets. Skyworks is a global company with engineering, marketing, operations, sales and support facilities located throughout Asia, Europe and North America and is a member of the S&P 500® and Nasdaq-100® market indices.
Analysis Results
Intrinsic Value $233.98
Latest Price $85.27
Relative Value 64% 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 15.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.9%, 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 1.64 1.51
2023 1.9 1.61
2024 2.2 1.72
2025 2.55 1.84
2026 2.95 1.97
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 46.9 billion. This corresponds to a present value of 28.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.66 billion. Adding in the terminal value gives a total present value of 37.5 billion.

There are presently 160.0 million outstanding shares, so the intrinsic value per share is 233.98.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 5,730,800,000
Current Cash 2,040,200,000
Current Liabilities 1,317,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,373,600,000
Change in NCWC 1,479,200,000
EBIT 3,243,200,000
Tax Provision 200,800,000
Depreciation and Amortization 873,400,000
Capital Expenditure -1,304,200,000
Unlevered Free Cash Flow 4,087,923,713
Current Assets 2,317,600,000
Current Cash 974,800,000
Current Liabilities 448,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 894,400,000
Change in NCWC 88,400,000
EBIT 905,600,000
Tax Provision 76,900,000
Depreciation and Amortization 364,300,000
Capital Expenditure -398,500,000
Unlevered Free Cash Flow 881,701,267
Current Assets 2,234,600,000
Current Cash 1,054,600,000
Current Liabilities 374,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 806,000,000
Change in NCWC -39,100,000
EBIT 958,800,000
Tax Provision 107,400,000
Depreciation and Amortization 371,600,000
Capital Expenditure -423,400,000
Unlevered Free Cash Flow 760,745,868
Current Assets 2,262,200,000
Current Cash 1,027,400,000
Current Liabilities 389,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 845,100,000
Change in NCWC 216,100,000
EBIT 1,320,100,000
Tax Provision 413,700,000
Depreciation and Amortization 299,200,000
Capital Expenditure -430,900,000
Unlevered Free Cash Flow 994,526,747
Current Assets 2,633,700,000
Current Cash 1,616,800,000
Current Liabilities 387,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 629,000,000
Change in NCWC -79,100,000
EBIT 1,254,400,000
Tax Provision 246,800,000
Depreciation and Amortization 254,800,000
Capital Expenditure -315,400,000
Unlevered Free Cash Flow 868,410,485
Current Assets 2,002,100,000
Current Cash 1,083,800,000
Current Liabilities 210,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 708,100,000
Change in NCWC 300,900,000
EBIT 1,123,500,000
Tax Provision 205,400,000
Depreciation and Amortization 247,800,000
Capital Expenditure -189,300,000
Unlevered Free Cash Flow 1,290,690,354
Current Assets 1,914,700,000
Current Cash 1,043,600,000
Current Liabilities 463,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 407,200,000
Change in NCWC 81,400,000
EBIT 1,026,500,000
Tax Provision 225,300,000
Depreciation and Amortization 195,800,000
Capital Expenditure -430,100,000
Unlevered Free Cash Flow 647,661,694
Current Assets 1,429,200,000
Current Cash 805,800,000
Current Liabilities 297,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) 325,800,000
Change in NCWC -56,700,000
EBIT 565,500,000
Tax Provision 107,500,000
Depreciation and Amortization 122,700,000
Capital Expenditure -208,600,000
Unlevered Free Cash Flow 315,342,940
Current Assets 1,073,300,000
Current Cash 511,100,000
Current Liabilities 179,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) 382,500,000
Change in NCWC -11,866,000
EBIT 351,500,000
Tax Provision 66,400,000
Depreciation and Amortization 74,300,000
Capital Expenditure -123,800,000
Unlevered Free Cash Flow 222,384,798
Current Assets 883,363,000
Current Cash 306,293,000
Current Liabilities 182,704,000
Current Debt 0
Non-Cash Working Capital (NCWC) 394,366,000
Change in NCWC 209,126,000
EBIT 263,386,000
Tax Provision 52,898,000
Depreciation and Amortization 69,545,000
Capital Expenditure -94,129,000
Unlevered Free Cash Flow 393,285,239

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