Discounted Cash Flow (DCF) Analysis Levered

Absolute Software Corporation (ABST)

$10.15

-0.05 (-0.49%)
All numbers are in Millions, Currency in USD
Stock DCF: 11.94 | 10.15 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 91.2193.6298.91104.67120.78129.70139.26149.54160.57172.42
Revenue (%)
Operating Cash Flow 1.0312.5510.2624.9646.8422.7024.3826.1828.1130.18
Operating Cash Flow (%)
Capital Expenditure -4.45-2.91-3.08-3.86-2.83-4.44-4.77-5.12-5.50-5.91
Capital Expenditure (%)
Free Cash Flow -3.429.647.1821.104418.2619.6121.0622.6124.28

Weighted Average Cost Of Capital

Share price $ 10.15
Beta 0.649
Diluted Shares Outstanding 49.92
Cost of Debt
Tax Rate 14.34
After-tax Cost of Debt 4.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.754
Total Debt 11.87
Total Equity 506.65
Total Capital 518.52
Debt Weighting 2.29
Equity Weighting 97.71
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 91.2193.6298.91104.67120.78129.70139.26149.54160.57172.42
Operating Cash Flow 1.0312.5510.2624.9646.8422.7024.3826.1828.1130.18
Capital Expenditure -4.45-2.91-3.08-3.86-2.83-4.44-4.77-5.12-5.50-5.91
Free Cash Flow -3.429.647.1821.104418.2619.6121.0622.6124.28
WACC
PV LFCF 17.1117.2217.3317.4417.55
SUM PV LFCF 86.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.70
Free cash flow (t + 1) 24.76
Terminal Value 526.85
Present Value of Terminal Value 380.95

Intrinsic Value

Enterprise Value 467.61
Net Debt -128.30
Equity Value 595.91
Shares Outstanding 49.92
Equity Value Per Share 11.94