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	112.70	108.71	115.47	111.41	127.55	131.91	136.41	141.06	145.87	150.85
Revenue (%)
Operating Cash Flow	6.75	23.93	25.98	17.76	29.02	23.53	24.33	25.16	26.02	26.91
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	0.52	16.72	22.39	16.46	28.09	19	19.65	20.32	21.01	21.73

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	112.70	108.71	115.47	111.41	127.55	131.91	136.41	141.06	145.87	150.85
Operating Cash Flow	6.75	23.93	25.98	17.76	29.02	23.53	24.33	25.16	26.02	26.91
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	0.52	16.72	22.39	16.46	28.09	19	19.65	20.32	21.01	21.73
WACC
PV LFCF						17.68	17.01	16.37	15.75	15.16
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