Discounted Cash Flow (DCF) Analysis Levered

Altair Engineering Inc. (ALTR)

$45.69

+1.47 (+3.32%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.33 | 45.69 | overvalue

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 333.33396.38458.92469.92532.18599.15674.55759.44855.01962.61
Revenue (%)
Operating Cash Flow 16.0936.2331.3932.8861.6247.2053.1359.8267.3575.82
Operating Cash Flow (%)
Capital Expenditure -9.64-9.39-10.13-8.23-8.19-12.89-14.51-16.34-18.40-20.71
Capital Expenditure (%)
Free Cash Flow 6.4526.8421.2624.6653.4334.3038.6243.4848.9555.11

Weighted Average Cost Of Capital

Share price $ 45.69
Beta 1.498
Diluted Shares Outstanding 73.24
Cost of Debt
Tax Rate -2,953.47
After-tax Cost of Debt 5.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.721
Total Debt 229.19
Total Equity 3,346.38
Total Capital 3,575.57
Debt Weighting 6.41
Equity Weighting 93.59
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 333.33396.38458.92469.92532.18599.15674.55759.44855.01962.61
Operating Cash Flow 16.0936.2331.3932.8861.6247.2053.1359.8267.3575.82
Capital Expenditure -9.64-9.39-10.13-8.23-8.19-12.89-14.51-16.34-18.40-20.71
Free Cash Flow 6.4526.8421.2624.6653.4334.3038.6243.4848.9555.11
WACC
PV LFCF 31.0831.7032.3432.9933.65
SUM PV LFCF 161.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.37
Free cash flow (t + 1) 56.21
Terminal Value 671.61
Present Value of Terminal Value 410.08

Intrinsic Value

Enterprise Value 571.84
Net Debt -184.56
Equity Value 756.39
Shares Outstanding 73.24
Equity Value Per Share 10.33