MediaTek Inc. researches, develops, produces, and markets integrated circuits (ICs) in worldwide. It provides multimedia, computer peripherals oriented, consumer-oriented, and other application ICs. The company offers mobile communication, tablet, automotive chipsets; bluetooth, wireless LAN chips; artificial intelligence of things device SoCs; global positioning satellite chips; smart home connectivity chips; optical storage chipsets; bio-sensing analog front-end chips; DVD player SoCs; blu-ray DVD player chipsets; digital TV controller chips; power management and controller chips for various electronics; and USB PD type-c controller chips. It also provides wireless communication chipsets are mainly used in smartphones, tablets, chromebook, and feature phones; and NFC and wireless charging chips are mainly used in mobile phones, routers, TVs, set-up-boxes, smart wearables, smart home appliances, internet of things applications, game consoles, notebooks, and portable navigation devices. In addition, the company offers digital TV decoder and demodulator chips are used to receive and decode digital TV signals from either satellite, terrestrial or cable for video, as well as video on demand via ethernet and Wi-Fi; and ASIC chips are mainly used in consumer and enterprise electronics. Further, it provides xDSL chipsets are mainly used in DSL and fiber-optic modems, wired DSL router, and IAD gateway; and automotive SoC for eCockpit, telematics, and mmWave radar. Additionally, the company is involved in the provision of software and hardware design, development, test, maintenance and repair, and technological consultation services; import and export of its products; sale and delegation of patents and circuit layout rights for its products; and investment activities. It also provides research, marketing, and technology services; and intellectual property right management services. The company was incorporated in 1997 and is headquartered in Hsinchu, 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	548,796	433,446.3	530,585.9	590,744.7	651,113.6	800,813.5	800,813.5	800,813.5
Revenue % Chg.	11.2%	-21%	22.4%
EBIT	126,788.5	71,799.5	102,412	105,849.8	118,235.2	152,875.4	152,875.4	152,875.4
EBIT Margin	23.1%	16.6%	19.3%
Tax Rate	12.5%	11.1%	10.4%
NOPAT	110,948.3	63,864	91,805.6	89,919.4	101,800.5	132,581.2	132,581.2	132,581.2
NOPAT Margin	20.2%	14.7%	17.3%	15.2%	15.6%	16.6%	16.6%	16.6%
D&A	14,685.2	17,822.8	20,501.9	23,440.9	26,414.9	32,283.5	32,283.5	32,283.5
D&A / Revenue	2.7%	4.1%	3.9%
Capex	-13,622.1	-9,324.8	-13,786.5	-14,267.9	-14,428.6	-15,912.2	-15,912.2	-15,912.2
Capex / Revenue	-2.5%	-2.2%	-2.6%
Chg. NWC	10,201.9	73,046.4	31,748.1	48,628.2	53,597.6	65,920.4	65,920.4	65,920.4
Chg. NWC / Revenue	1.9%	16.9%	6%
Unlevered FCF (UFCF)	122,213.2	145,408.5	130,269.1	147,720.5	167,384.3	214,872.9	214,872.9	214,872.9
UFCF % Chg.	827%	19%	-10.4%	13.4%	13.3%	28.4%	—	—
PV of UFCF	—	—	—	134,778.6	139,339.7	163,200.6	148,902.4	135,856.9
Sum of PV of UFCF	—	—	—	134,778.6	274,118.3	437,318.8	586,221.2	722,078.1

Cost of Debt
Tax Rate
After Tax Cost of Debt	3.8%
Risk Free Rate
Market Risk Premium
Beta	1
Cost of Equity	9.6%
Total Debt	10,310.3
Market Cap	2,226,608.2
Total Capital	2,236,918.5
Debt Weighting	0.5%
Equity Weighting	99.5%
WACC	9.6%

Exit Multiple EV/FCF
Terminal Value	2,049,169.7
PV of Terminal Value	1,182,110.6
Cumulative PV of UFCF	722,078.1
Net Debt	-185,849.7
Equity Value	2,090,038.3
Shares Outstanding	1,596.1
Implied Share Price	1,309.4
Current Share Price	1,405
Implied Upside / (Downside)	-6.8%