Maxim Integrated Products, Inc. designs, develops, manufactures, and markets various linear and mixed-signal integrated circuits in the United States, China, other countries in Asia, Europe, and internationally. More info.
The calculations below outline how an intrinsic value for Maxim Integrated Products is arrived at by discounting future cash flows to their present value. We use analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$646.98||$740.88||$682.00||$667.30||$652.91|
|Source||Analyst x10||Analyst x9||Analyst x1||Extrapolated @ (-2.16%)||Extrapolated @ (-2.16%)|
Discounted (@ 9%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $653 × (1 + 2.5%) ÷ (8.96% – 2.5%)
Terminal value based on the Perpetuity Method where growth (g) = 2.5%:
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
Value = Total value / Shares Outstanding ($9,353 / 283)
Value per share:
Current discount (share price of $41.39): -25%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 8.96% = 2.47% + (0.862 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
0.862 = 0.803 (1 + (1- 30%) (10.58%))
Levered Beta used in calculation = 0.862
Are Maxim Integrated Products's annual earnings growth expected to exceed 3.6% over the next 3 years?
Mr. Tunç Doluca has been the President and the Chief Executive Officer of Maxim Integrated Products, Inc. since January 1, 2007. Mr. Doluca served as Group President of Maxim Integrated Products Inc., since May 2005 and its Senior Vice President since 2004. He joined Maxim Integrated Products Inc., in October 1984 as a member of its integrated circuit design development staff and then served as its Vice President since of R& D from July 1994 to 2004. At that time, he designed the industry's first high-integration, notebook power-supply IC (the MAX786), and designed ICs until 1996. While at Maxim, Mr. Doluca personally designed over 40 products and holds 11 patents. In 1994, he became the leader of first vertical business unit for portable power-management products. Mr. Doluca established the first vertical business unit at Maxim, focused on portable power management products, now a significant revenue generator for Maxim Integrated Products Inc. He also served as Maxim's Vice President of Research and Development before his Business Unit responsibility. He holds eleven mixed signal design patents. Mr. Doluca has been a Director of Semiconductor Industry Association since June 2011 and Maxim Integrated Products Inc. since January 2007. Mr. Doluca attended the Middle East Technical University in Ankara, and holds a BSEE degree from Iowa State University and an MSEE degree from University of California, Santa Barbara.
Average tenure of the Maxim Integrated Products management team:
Average tenure of the Maxim Integrated Products board of directors:
Maxim Integrated Products, Inc. designs, develops, manufactures, and markets various linear and mixed-signal integrated circuits in the United States, China, other countries in Asia, Europe, and internationally. It also provides a range of high-frequency process technologies and capabilities for use in custom designs. The company serves automotive, communications and data center, computing, consumer, and industrial markets. It markets its products through a direct-sales and applications organization, as well as through its own and other unaffiliated distribution channels. Maxim Integrated Products, Inc. was founded in 1983 and is headquartered in San Jose, California.
|Name:||Maxim Integrated Products, Inc.|
|Market Cap:||$11,725 million|
160 Rio Robles, San Jose, 95134, United States
|Sector:||Semiconductors and Semiconductor Equipment|