Discounted Cash Flow (DCF) Analysis Levered

Altair Engineering Inc. (ALTR)

$85.52

-4.34 (-4.83%)
All numbers are in Millions, Currency in USD
Stock DCF: 7.00 | 85.52 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 396.38458.92469.92532.18572.22627.94689.08756.18829.80910.60
Revenue (%)
Operating Cash Flow 36.2331.3932.8861.6239.5752.0857.1662.7268.8375.53
Operating Cash Flow (%)
Capital Expenditure -9.39-10.13-8.23-8.19-9.65-12-13.16-14.45-15.85-17.40
Capital Expenditure (%)
Free Cash Flow 26.8421.2624.6653.4329.9240.0943.9948.2852.9858.13

Weighted Average Cost Of Capital

Share price $ 85.52
Beta 1.452
Diluted Shares Outstanding 79.47
Cost of Debt
Tax Rate -53.93
After-tax Cost of Debt 4.29%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.138
Total Debt 340.06
Total Equity 6,796.45
Total Capital 7,136.51
Debt Weighting 4.77
Equity Weighting 95.23
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 396.38458.92469.92532.18572.22627.94689.08756.18829.80910.60
Operating Cash Flow 36.2331.3932.8861.6239.5752.0857.1662.7268.8375.53
Capital Expenditure -9.39-10.13-8.23-8.19-9.65-12-13.16-14.45-15.85-17.40
Free Cash Flow 26.8421.2624.6653.4329.9240.0943.9948.2852.9858.13
WACC
PV LFCF 36.1835.8335.4835.1434.80
SUM PV LFCF 177.42

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.81
Free cash flow (t + 1) 59.30
Terminal Value 673.06
Present Value of Terminal Value 402.87

Intrinsic Value

Enterprise Value 580.29
Net Debt 23.92
Equity Value 556.37
Shares Outstanding 79.47
Equity Value Per Share 7.00