Discounted Cash Flow (DCF) Analysis Levered

Blackbaud, Inc. (BLKB)

$58.63

+0.69 (+1.19%)

All numbers are in Millions, Currency in USD

Stock DCF: 44.92 | 58.63 | 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	788.31	848.61	900.42	913.22	927.74	966.63	1,007.15	1,049.36	1,093.35	1,139.18
Revenue (%)
Operating Cash Flow	176.29	201.38	182.48	147.96	213.66	204.14	212.69	221.61	230.90	240.58
Operating Cash Flow (%)
Capital Expenditure	-38.55	-52.35	-58.37	-71.85	-52.15	-59.99	-62.50	-65.12	-67.85	-70.70
Capital Expenditure (%)
Free Cash Flow	137.74	149.04	124.11	76.11	161.51	144.15	150.19	156.48	163.04	169.88

Weighted Average Cost Of Capital

Share price	$ 58.63
Beta	1.104
Diluted Shares Outstanding	48.70
Cost of Debt
Tax Rate	19.55
After-tax Cost of Debt	1.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.902
Total Debt	1,009.57
Total Equity	2,855.07
Total Capital	3,864.63
Debt Weighting	26.12
Equity Weighting	73.88
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	788.31	848.61	900.42	913.22	927.74	966.63	1,007.15	1,049.36	1,093.35	1,139.18
Operating Cash Flow	176.29	201.38	182.48	147.96	213.66	204.14	212.69	221.61	230.90	240.58
Capital Expenditure	-38.55	-52.35	-58.37	-71.85	-52.15	-59.99	-62.50	-65.12	-67.85	-70.70
Free Cash Flow	137.74	149.04	124.11	76.11	161.51	144.15	150.19	156.48	163.04	169.88
WACC
PV LFCF						134.78	131.30	127.92	124.62	121.40
SUM PV LFCF										640.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.95
Free cash flow (t + 1)	173.28
Terminal Value	3,500.51
Present Value of Terminal Value	2,501.65

Intrinsic Value

Enterprise Value	3,141.67
Net Debt	954.42
Equity Value	2,187.25
Shares Outstanding	48.70
Equity Value Per Share	44.92