DCF Tool

VICR

Vicor Corp. – Optical Instrument and Lens Manufacturing
Vicor Corporation designs, develops, manufactures, and markets modular power components and complete power systems based upon a portfolio of patented technologies. Headquartered in Andover, Massachusetts, Vicor sells its products to the power systems market, including enterprise and high performance computing, industrial equipment and automation, telecommunications and network infrastructure, vehicles and transportation, and aerospace and defense electronics.
Analysis Results
Intrinsic Value $33.02
Latest Price $54.10
Relative Value 64% overvalued
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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 37.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 13.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 37.7%, 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 47.9 42.3
2023 66.0 51.5
2024 90.9 62.6
2025 125 76.1
2026 172 92.6
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1560 million. This corresponds to a present value of 742 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 325 million. Adding in the terminal value gives a total present value of 1070 million.

There are presently 32.3 million outstanding shares, so the intrinsic value per share is 33.02.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 356,760,000
Current Cash 227,633,000
Current Liabilities 49,093,000
Current Debt 0
Non-Cash Working Capital (NCWC) 80,034,000
Change in NCWC 15,523,000
EBIT 55,602,000
Tax Provision 176,000
Depreciation and Amortization 11,705,000
Capital Expenditure -47,761,000
Unlevered Free Cash Flow 34,896,727
Current Assets 316,932,000
Current Cash 211,908,000
Current Liabilities 40,513,000
Current Debt 0
Non-Cash Working Capital (NCWC) 64,511,000
Change in NCWC 43,000
EBIT 17,368,000
Tax Provision 539,000
Depreciation and Amortization 11,056,000
Capital Expenditure -28,653,000
Unlevered Free Cash Flow -693,088
Current Assets 179,066,000
Current Cash 84,668,000
Current Liabilities 29,930,000
Current Debt 0
Non-Cash Working Capital (NCWC) 64,468,000
Change in NCWC 5,963,000
EBIT 13,821,000
Tax Provision 778,000
Depreciation and Amortization 10,334,000
Capital Expenditure -12,485,000
Unlevered Free Cash Flow 16,910,709
Current Assets 165,060,000
Current Cash 70,557,000
Current Liabilities 35,998,000
Current Debt 0
Non-Cash Working Capital (NCWC) 58,505,000
Change in NCWC 11,939,000
EBIT 32,461,000
Tax Provision 1,087,000
Depreciation and Amortization 9,254,000
Capital Expenditure -18,211,000
Unlevered Free Cash Flow 34,371,579
Current Assets 118,832,000
Current Cash 44,230,000
Current Liabilities 28,036,000
Current Debt 0
Non-Cash Working Capital (NCWC) 46,566,000
Change in NCWC 13,191,000
EBIT -1,360,000
Tax Provision -356,000
Depreciation and Amortization 8,893,000
Capital Expenditure -12,545,000
Unlevered Free Cash Flow 8,179,000
Current Assets 111,772,000
Current Cash 56,170,000
Current Liabilities 22,227,000
Current Debt 0
Non-Cash Working Capital (NCWC) 33,375,000
Change in NCWC 1,450,000
EBIT -6,314,000
Tax Provision 231,000
Depreciation and Amortization 8,438,000
Capital Expenditure -8,428,000
Unlevered Free Cash Flow -4,854,000
Current Assets 115,506,000
Current Cash 62,980,000
Current Liabilities 20,601,000
Current Debt 0
Non-Cash Working Capital (NCWC) 31,925,000
Change in NCWC -2,939,000
EBIT -267,000
Tax Provision -401,000
Depreciation and Amortization 9,142,000
Capital Expenditure -9,090,000
Unlevered Free Cash Flow -3,154,000
Current Assets 113,478,000
Current Cash 55,457,000
Current Liabilities 23,157,000
Current Debt 0
Non-Cash Working Capital (NCWC) 34,864,000
Change in NCWC -6,203,000
EBIT -12,556,000
Tax Provision -425,000
Depreciation and Amortization 9,805,000
Capital Expenditure -7,128,000
Unlevered Free Cash Flow -16,082,000
Current Assets 118,524,000
Current Cash 56,802,000
Current Liabilities 20,655,000
Current Debt 0
Non-Cash Working Capital (NCWC) 41,067,000
Change in NCWC -2,877,000
EBIT -19,106,000
Tax Provision 3,039,000
Depreciation and Amortization 10,008,000
Capital Expenditure -6,179,000
Unlevered Free Cash Flow -18,154,000
Current Assets 146,063,000
Current Cash 84,554,000
Current Liabilities 17,565,000
Current Debt 0
Non-Cash Working Capital (NCWC) 43,944,000
Change in NCWC -8,534,000
EBIT -2,748,000
Tax Provision 1,207,000
Depreciation and Amortization 10,423,000
Capital Expenditure -7,396,000
Unlevered Free Cash Flow -8,255,000

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