Delta Electronics, Inc., together with its subsidiaries, provides power and thermal management solutions in Mainland China, the United States, Taiwan, and internationally. It operates through Power Electronics, Automation, and Infrastructure segments. The Power Electronics segment offers inductors, transformers, networking products, EMI filters, solenoids, and current sensing resistors for use in portable devices, cloud computing equipment, automotive, IoT, and other market segments; and switching power supplies, power modules, external adapters, industrial and medical power, and industrial battery charging products. This segment also provides DC brushless fans and blowers, motors, thermal management products, cabinet thermal solutions, and ventilation and automotive fans; and automotive electronics comprising EV/HEV powertrain solutions, on-board chargers, DC/DC converters, and traction inverters and motors, as well as merchant and mobile power products. The Automation segment offers industrial automation products and solutions consisting of drives, motion control systems, industrial control and communication products, power quality improvement products, human machine interfaces, sensors, meters, and robot solutions; and information monitoring and management systems, such as SCADA and industrial EMS for smart manufacturing solutions. It also provides building automation solutions, which includes building management software, controls, high-efficiency LED drivers, and luminaires for smart lighting solutions and intelligent video surveillance technologies. The Infrastructure segment offers telecom power systems, networking systems, and uninterruptible power supplies and datacenter infrastructure products; and EV charging products, energy storage systems, renewable energy products, and motor drives. Delta Electronics, Inc. was incorporated in 1971 and is headquartered in Taipei, Taiwan.

BUILD UP FREE CASH	2022-12-31 (A)	2023-12-31 (A)	2024-12-31 (A)	2025-12-31 (E)	2026-12-31 (E)	2027-12-31 (E)	2028-12-31 (E)	2029-12-31 (E)
Revenue	384,443.3	401,226.5	421,147.6	549,614.9	682,717.2	823,011.4	823,011.4	823,011.4
Revenue % Chg.	22.2%	4.4%	5%
EBIT	41,439.1	40,941.8	47,733.7	83,041.3	118,480	147,385.1	147,385.1	147,385.1
EBIT Margin	10.8%	10.2%	11.3%
Tax Rate	19.7%	20.1%	21.3%
NOPAT	33,275.9	32,725.4	37,571.8	65,090.5	94,389.1	117,539.6	117,539.6	117,539.6
NOPAT Margin	8.7%	8.2%	8.9%	11.8%	13.8%	14.3%	14.3%	14.3%
D&A	18,936.2	21,589.8	25,016.2	28,013.6	28,942.1	31,935.9	31,935.9	31,935.9
D&A / Revenue	4.9%	5.4%	5.9%
Capex	-21,824	-27,829.8	-33,484.9	-39,673.1	-39,025.1	-38,548.7	-38,548.7	-38,548.7
Capex / Revenue	-5.7%	-6.9%	-8%
Chg. NWC	-11,748.9	9,202.4	1,689.5	-662	-822.3	-991.3	-991.3	-991.3
Chg. NWC / Revenue	-3.1%	2.3%	0.4%
Unlevered FCF (UFCF)	18,639.2	35,687.8	30,792.6	52,768.9	83,483.7	109,935.5	109,935.5	109,935.5
UFCF % Chg.	4,191.6%	91.5%	-13.7%	71.4%	58.2%	31.7%	0%	—
PV of UFCF	—	—	—	48,262.9	69,834.7	84,109	76,926.7	70,357.7
Sum of PV of UFCF	—	—	—	48,262.9	118,097.6	202,206.5	279,133.2	349,491

Cost of Debt
Tax Rate
After Tax Cost of Debt	1.9%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	9.5%
Total Debt	67,525
Market Cap	2,594,945.8
Total Capital	2,662,470.8
Debt Weighting	2.5%
Equity Weighting	97.5%
WACC	9.3%

Exit Multiple EV/FCF
Terminal Value	2,597,464.8
PV of Terminal Value	1,520,401.8
Cumulative PV of UFCF	349,491
Net Debt	-50,251.1
Equity Value	1,920,143.9
Shares Outstanding	2,597.5
Implied Share Price	739.2
Current Share Price	979
Implied Upside / (Downside)	-24.5%