DCF Tool

VECO

Veeco Instruments Inc – Semiconductor and Related Device Manufacturing
Veeco is an innovative manufacturer of semiconductor process equipment. Its proven ion beam, laser annealing, lithography, MOCVD and single wafer etch & clean technologies play an integral role in the fabrication and packaging of advanced semiconductor devices. With equipment designed to optimize performance, yield and cost of ownership, Veeco holds leading technology positions in the markets.
Analysis Results
Intrinsic Value $31.71
Latest Price $18.86
Relative Value 41% undervalued
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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 26.0%.

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 26.0%, 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 (million) Present value (million)
2022 75.5 68.1
2023 95.1 77.4
2024 120 88.0
2025 151 100
2026 190 114
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2190 million. This corresponds to a present value of 1180 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 447 million. Adding in the terminal value gives a total present value of 1630 million.

There are presently 51.4 million outstanding shares, so the intrinsic value per share is 31.71.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 549,387,000
Current Cash 223,928,000
Current Liabilities 189,204,000
Current Debt 0
Non-Cash Working Capital (NCWC) 136,255,000
Change in NCWC 15,401,000
EBIT 56,710,000
Tax Provision -358,000
Depreciation and Amortization 26,058,000
Capital Expenditure -40,643,000
Unlevered Free Cash Flow 57,526,000
Current Assets 586,931,000
Current Cash 319,396,000
Current Liabilities 146,681,000
Current Debt 0
Non-Cash Working Capital (NCWC) 120,854,000
Change in NCWC 7,746,000
EBIT 23,943,000
Tax Provision -73,000
Depreciation and Amortization 30,697,000
Capital Expenditure -6,802,000
Unlevered Free Cash Flow 55,584,000
Current Assets 475,878,000
Current Cash 244,546,000
Current Liabilities 118,224,000
Current Debt 0
Non-Cash Working Capital (NCWC) 113,108,000
Change in NCWC 13,543,000
EBIT -29,197,000
Tax Provision 777,000
Depreciation and Amortization 34,399,000
Capital Expenditure -10,873,000
Unlevered Free Cash Flow 7,872,000
Current Assets 520,080,000
Current Cash 260,462,000
Current Liabilities 160,053,000
Current Debt 0
Non-Cash Working Capital (NCWC) 99,565,000
Change in NCWC 53,545,000
EBIT -28,447,000
Tax Provision -26,746,000
Depreciation and Amortization 49,998,000
Capital Expenditure -12,654,000
Unlevered Free Cash Flow 62,442,000
Current Assets 596,992,000
Current Cash 327,516,000
Current Liabilities 223,456,000
Current Debt 0
Non-Cash Working Capital (NCWC) 46,020,000
Change in NCWC 31,884,000
EBIT -33,394,000
Tax Provision -36,107,000
Depreciation and Amortization 50,095,000
Capital Expenditure -24,272,000
Unlevered Free Cash Flow 24,313,000
Current Assets 501,508,000
Current Cash 344,231,000
Current Liabilities 143,509,000
Current Debt 368,000
Non-Cash Working Capital (NCWC) 14,136,000
Change in NCWC 19,174,000
EBIT -45,019,000
Tax Provision 2,766,000
Depreciation and Amortization 32,650,000
Capital Expenditure -11,479,000
Unlevered Free Cash Flow -4,674,000
Current Assets 542,135,000
Current Cash 385,282,000
Current Liabilities 162,231,000
Current Debt 340,000
Non-Cash Working Capital (NCWC) -5,038,000
Change in NCWC -1,223,000
EBIT -19,124,000
Tax Provision 9,332,000
Depreciation and Amortization 39,850,000
Capital Expenditure -13,887,000
Unlevered Free Cash Flow 5,616,000
Current Assets 555,662,000
Current Cash 391,383,000
Current Liabilities 168,408,000
Current Debt 314,000
Non-Cash Working Capital (NCWC) -3,815,000
Change in NCWC 2,780,000
EBIT -49,195,000
Tax Provision -11,414,000
Depreciation and Amortization 24,573,000
Capital Expenditure -15,588,000
Unlevered Free Cash Flow -37,430,000
Current Assets 613,643,000
Current Cash 492,337,000
Current Liabilities 128,191,000
Current Debt 290,000
Non-Cash Working Capital (NCWC) -6,595,000
Change in NCWC -62,269,000
EBIT -69,295,000
Tax Provision -28,947,000
Depreciation and Amortization 18,425,000
Capital Expenditure -9,174,000
Unlevered Free Cash Flow -122,313,000
Current Assets 744,484,000
Current Cash 576,791,000
Current Liabilities 112,287,000
Current Debt 268,000
Non-Cash Working Capital (NCWC) 55,674,000
Change in NCWC -40,137,000
EBIT 41,962,000
Tax Provision 11,657,000
Depreciation and Amortization 16,192,000
Capital Expenditure -24,994,000
Unlevered Free Cash Flow -19,786,695

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