Discounted Cash Flow (DCF) Analysis Levered

Axway Software SA (AXW.PA)

24.9 €

-0.20 (-0.80%)

All numbers are in Millions, Currency in USD

Stock DCF: 8.83 | 24.9 | 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	283.83	299.96	297.23	285.55	314.03	322.52	331.24	340.20	349.40	358.85
Revenue (%)
Operating Cash Flow	22.61	13.61	12.12	12.94	12.96	16.28	16.72	17.17	17.64	18.11
Operating Cash Flow (%)
Capital Expenditure	-4.37	-4.55	-7.75	-2.83	-2.32	-4.77	-4.90	-5.03	-5.17	-5.31
Capital Expenditure (%)
Free Cash Flow	18.24	9.05	4.38	10.12	10.64	11.51	11.82	12.14	12.47	12.81

Weighted Average Cost Of Capital

Share price	$ 24.9
Beta	0.491
Diluted Shares Outstanding	22.23
Cost of Debt
Tax Rate	15.61
After-tax Cost of Debt	3.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.573
Total Debt	112.07
Total Equity	553.57
Total Capital	665.65
Debt Weighting	16.84
Equity Weighting	83.16
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	283.83	299.96	297.23	285.55	314.03	322.52	331.24	340.20	349.40	358.85
Operating Cash Flow	22.61	13.61	12.12	12.94	12.96	16.28	16.72	17.17	17.64	18.11
Capital Expenditure	-4.37	-4.55	-7.75	-2.83	-2.32	-4.77	-4.90	-5.03	-5.17	-5.31
Free Cash Flow	18.24	9.05	4.38	10.12	10.64	11.51	11.82	12.14	12.47	12.81
WACC
PV LFCF						10.85	10.51	10.18	9.85	9.54
SUM PV LFCF										50.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.07
Free cash flow (t + 1)	13.07
Terminal Value	321.01
Present Value of Terminal Value	239.09

Intrinsic Value

Enterprise Value	290.02
Net Debt	93.75
Equity Value	196.27
Shares Outstanding	22.23
Equity Value Per Share	8.83