Discounted Cash Flow (DCF) Analysis Levered

American Software, Inc. (AMSWA)

$15.16

-0.05 (-0.30%)
All numbers are in Millions, Currency in USD
Stock DCF: 13.83 | 15.16 | 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 112.70108.71115.47111.41127.55131.91136.41141.06145.87150.85
Revenue (%)
Operating Cash Flow 6.7523.9325.9817.7629.0223.5324.3325.1626.0226.91
Operating Cash Flow (%)
Capital Expenditure -6.23-7.21-3.59-1.30-0.93-4.53-4.68-4.84-5.01-5.18
Capital Expenditure (%)
Free Cash Flow 0.5216.7222.3916.4628.091919.6520.3221.0121.73

Weighted Average Cost Of Capital

Share price $ 15.16
Beta 0.800
Diluted Shares Outstanding 34.30
Cost of Debt
Tax Rate 7.62
After-tax Cost of Debt 36.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.414
Total Debt 1
Total Equity 520.06
Total Capital 521.07
Debt Weighting 0.19
Equity Weighting 99.81
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 112.70108.71115.47111.41127.55131.91136.41141.06145.87150.85
Operating Cash Flow 6.7523.9325.9817.7629.0223.5324.3325.1626.0226.91
Capital Expenditure -6.23-7.21-3.59-1.30-0.93-4.53-4.68-4.84-5.01-5.18
Free Cash Flow 0.5216.7222.3916.4628.091919.6520.3221.0121.73
WACC
PV LFCF 17.6817.0116.3715.7515.16
SUM PV LFCF 81.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.47
Free cash flow (t + 1) 22.17
Terminal Value 405.21
Present Value of Terminal Value 282.65

Intrinsic Value

Enterprise Value 364.62
Net Debt -109.69
Equity Value 474.31
Shares Outstanding 34.30
Equity Value Per Share 13.83