The calculations below outline how an intrinsic value for Xilinx 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)||$751.63||$783.06||$837.12||$931.70||$941.90|
|Source||Analyst x7||Analyst x7||Analyst x6||Analyst x1||Extrapolated @ (1.09%)|
Discounted (@ 8.8%)
Present value of next 5 years cash flows:
Terminal Value = FCF2021 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $942 × (1 + 2.3%) ÷ (8.76% – 2.3%)
Terminal value based on the Perpetuity Method where growth (g) = 2.3%:
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows + terminal value
Value = Total value / Shares Outstanding ($13,140 / 247)
Value per share:
Current discount (share price of $64.46): -21%
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 = 8.76% = 2.33% + (0.838 * 7.67%)
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))
0.838 = 0.788 (1 + (1- 30%) (9.11%))
Levered Beta used in calculation = 0.838
Are Xilinx's annual earnings growth expected to exceed 3.4% over the next 3 years?
Mr. Moshe N. Gavrielov has been the Chief Executive Officer and President of Xilinx, Inc. since January 2008. Mr. Gavrielov has nearly 30 years of executive management and engineering experience with semiconductor and software companies to Xilinx. He served as an Executive Vice President and General Manager of Verification Division at Cadence Design Systems Inc. from April 2005 to November 30, 2007 and also serves as its Consultant. From March 1998 to April 7, 2005, Mr. Gavrielov served as Chief Executive Officer of Verisity Ltd., an EDA company, until the acquisition of Verisity by Cadence. He has over 25 years of experience in the semiconductor and electronic design automation ("EDA") industry. He served various positions at LSI Logic Corporation for nearly ten years, including as an Executive Vice President of LSI's Logic Products Group and as a Senior Vice President of International Markets and also served as a Senior Vice President and General Manager of LSI Logic Europe and General Manager of the Application-Specific Integrated Circuit (ASIC ) Division. Mr. Gavrielov started his career in the various Engineering and Management positions at Digital Equipment Corporation and at National Semiconductor Corporation. He served as Consultant of Cadence Design Systems Inc. He has been a Director of Xilinx, Inc. since February 14, 2008. He served as a Director of Reshape Inc. He served as a Director of Vitesse Semiconductor Corp. from April 25, 2005 to June 26, 2007. He served as a Director of Electronic Design Automation Consortium. He served as a Director of Verisity Ltd. since May 1998. He served as a Director of Xpedion Design Systems, Inc. Mr. Gavrielov holds a Bachelor of Science degree in Electrical Engineering and a Masters of Science degree in Computer Science from the Technion Israel Institute of Technology (IIT) in Haifa, Israel.
Average tenure of the Xilinx management team:
Average tenure of the Xilinx board of directors:
Xilinx, Inc. designs and develops programmable devices and associated technologies worldwide. Its programmable devices comprise integrated circuits (ICs) in the form of programmable logic devices (PLDs), such as programmable system on chips, and three dimensional ICs; software design tools to program the PLDs; software development environments and embedded platforms; targeted reference designs; printed circuit boards; and intellectual property (IP). The company also offers development boards; development kits, including hardware, design tools, IP, and reference designs that are designed to streamline and accelerate the development of domain-specific and market-specific applications; and configuration products, such as one-time programmable and in-system programmable storage devices to configure field programmable gate arrays. In addition, it provides design services, customer training, field engineering, and technical support. The company offers its products to electronic equipment manufacturers in sub-segments, such as wireline and data center, wireless, aerospace and defense, test and measurement, industrial, scientific and medical, automotive, audio, video and broadcast, and consumer. Xilinx, Inc. sells its products through a network of independent distributors; and through direct sales to original equipment manufacturers and electronic manufacturing service providers by a network of independent sales representative firms and by a direct sales management organization. The company was founded in 1984 and is headquartered in San Jose, California.
|Market Cap:||$15,941 million|
2100 Logic Drive, San Jose, 95124, United States
|Sector:||Semiconductors and Semiconductor Equipment|