OLED
Universal Display Corporation (OLED)
Last Price$149.7(4.0%)
Market Cap$7,251.2M
DCF value
$62.7
Overvalued (DCF value)
(58.1%)
Discount Rate
10.7%
Long-Term Growth Rate
4.0%
Stock quality
7/10
Great

OLED DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Dec'20 ActualDec'21 ActualDec'22 ActualDec'23 ActualDec'24 ActualDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 EstimateDec'35 Terminal
% growth
428.9
5.8%
553.5
29.1%
616.6
11.4%
576.4
(6.5%)
647.7
12.4%
668.9
3.3%
761.8
13.9%
902.7
18.5%
1,053.3
16.7%
1,210.0
14.9%
1,368.0
13.1%
1,521.9
11.2%
1,665.5
9.4%
1,792.5
7.6%
1,896.7
5.8%
1,972.5
4.0%
157.5
36.7%
227.6
41.1%
267.1
43.3%
217.2
37.7%
238.8
36.9%
261.8
39.1%
298.2
39.1%
353.4
39.1%
412.3
39.1%
473.6
39.1%
535.5
39.1%
595.7
39.1%
652.0
39.1%
701.7
39.1%
742.4
39.1%
772.1
39.1%
NOPAT
% effective tax rate
128.5
30.0%
183.7
33.2%
209.2
33.9%
179.8
31.2%
194.9
30.1%
213.7
31.9%
243.4
31.9%
288.4
31.9%
336.5
31.9%
386.5
31.9%
437.0
31.9%
486.2
31.9%
532.1
31.9%
572.6
31.9%
605.9
31.9%
630.1
31.9%
% of revenue
37.2
8.7%
42.0
7.6%
42.3
6.9%
43.4
7.5%
0.0
0.0%
32.1
4.8%
36.5
4.8%
43.3
4.8%
50.5
4.8%
58.0
4.8%
65.6
4.8%
73.0
4.8%
79.9
4.8%
86.0
4.8%
90.9
4.8%
94.6
4.8%
% of revenue
(28.1)
(6.5%)
(43.6)
(7.9%)
(47.2)
(7.7%)
(59.8)
(10.4%)
(42.6)
(6.6%)
(54.9)
(8.2%)
(62.5)
(8.2%)
(74.1)
(8.2%)
(86.4)
(8.2%)
(99.3)
(8.2%)
(112.2)
(8.2%)
(124.9)
(8.2%)
(136.6)
(8.2%)
(147.1)
(8.2%)
(155.6)
(8.2%)
(161.8)
(8.2%)
136.6
31.8%
140.4
25.4%
(134.3)
(21.8%)
(103.5)
(18.0%)
(25.3)
(3.9%)
(97.3)
(14.5%)
(110.8)
(14.5%)
(131.3)
(14.5%)
(153.2)
(14.5%)
(176.0)
(14.5%)
(199.0)
(14.5%)
(221.4)
(14.5%)
(242.3)
(14.5%)
(260.8)
(14.5%)
(275.9)
(14.5%)
(287.0)
(14.5%)
Free Cash Flow to Firm (FCFF)
% of revenue
274.2
63.9%
322.5
58.3%
70.0
11.3%
59.9
10.4%
126.9
19.6%
93.6
14.0%
106.6
14.0%
126.3
14.0%
147.4
14.0%
169.3
14.0%
191.4
14.0%
212.9
14.0%
233.0
14.0%
250.8
14.0%
265.3
14.0%
275.9
14.0%
% of FCFF used in calculation
80.8%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.95
0.86
0.78
0.70
0.63
0.57
0.52
0.47
0.42
0.38
Discounted FCFF (DFCFF)
71.9
91.5
97.9
103.2
107.0
109.3
109.8
108.5
105.5
100.8

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OLED DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
1,005.3M
39.2%
Terminal Value (TV)
4,103.9M
Discounted TV
% share of EV
1,559.2M
60.8%
Total Debt
19.1M
3,038.1M
Shares outstanding
48.5M
FX rate
1.0
58.1% overvalued

Equity Value Bridge

OLED DCF Financials

Revenue
$647.7M -> $1,896.7M 11.3% CAGR
Operating Income
$238.8M -> $742.4M 12.0% CAGR
FCFF
$126.9M -> $265.3M 7.7% CAGR

OLED DCF sensitivity

DCF value
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
10.0%
$64.0
$67.0
$70.0
$73.0
$77.0
10.5%
$60.0
$62.0
$65.0
$68.0
$71.0
10.7%
$59.0
$60.0
$63.0
$65.0
$68.0
11.5%
$54.0
$55.0
$57.0
$59.0
$61.0
12.0%
$51.0
$52.0
$54.0
$55.0
$57.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
3.0%
3.5%
4.0%
4.5%
5.0%
WACC
10.0%
(57.0%)
(55.0%)
(53.0%)
(51.0%)
(49.0%)
10.5%
(60.0%)
(59.0%)
(57.0%)
(55.0%)
(53.0%)
10.7%
(61.0%)
(60.0%)
(58.0%)
(57.0%)
(55.0%)
11.5%
(64.0%)
(63.0%)
(62.0%)
(61.0%)
(59.0%)
12.0%
(66.0%)
(65.0%)
(64.0%)
(63.0%)
(62.0%)

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FAQ

What is Universal Display Corporation DCF (discounted cash flow) valuation?

As of Mar 11, 2025, Universal Display Corporation's Discounted Cash Flow (DCF) valuation estimates its share price at $62.7. This suggests it may be overvalued by (58.1%) compared to its current price of around $149.7, using a WACC of 10.7% and growth rates of 4.0%.

What is Universal Display Corporation WACC?

As of Mar 11, 2025, Universal Display Corporation's Weighted Average Cost of Capital (WACC) is approximately 10.7%.

What is Universal Display Corporation Enterprise Value?

As of Mar 11, 2025, Universal Display Corporation's Enterprise Value (EV) is approximately $2,564.5M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.