Discounted Cash Flow (DCF) Analysis Levered

Computer Programs and Systems, Inc. (CPSI)

$ 27.915

-0.19 (-0.69%)

All numbers are in Millions, Currency in USD

Stock DCF: 53.10 | 27.915 | undervalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	267.27	276.93	280.41	274.63	264.49	263.90	263.32	262.74	262.16	261.58
Revenue (%)
Operating Cash Flow	2.10	23.64	23.93	43.60	49.14	27.61	27.55	27.49	27.43	27.37
Operating Cash Flow (%)
Capital Expenditure	-0.04	-0.73	-0.98	-1.76	-6.66	-2	-1.99	-1.99	-1.99	-1.98
Capital Expenditure (%)
Free Cash Flow	2.07	22.92	22.95	41.84	42.48	25.61	25.56	25.50	25.44	25.39

Weighted Average Cost Of Capital

Share price	$ 27.915
Beta	0.728
Diluted Shares Outstanding	13.78
Cost of Debt
Tax Rate	24.16
After-tax Cost of Debt	3.45%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.268
Total Debt	78.33
Total Equity	384.61
Total Capital	462.95
Debt Weighting	16.92
Equity Weighting	83.08
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	267.27	276.93	280.41	274.63	264.49	263.90	263.32	262.74	262.16	261.58
Operating Cash Flow	2.10	23.64	23.93	43.60	49.14	27.61	27.55	27.49	27.43	27.37
Capital Expenditure	-0.04	-0.73	-0.98	-1.76	-6.66	-2	-1.99	-1.99	-1.99	-1.98
Free Cash Flow	2.07	22.92	22.95	41.84	42.48	25.61	25.56	25.50	25.44	25.39
WACC
PV LFCF						22.15	21.06	20.02	19.03	18.09
SUM PV LFCF										110.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.96
Free cash flow (t + 1)	25.90
Terminal Value	874.86
Present Value of Terminal Value	686.79

Intrinsic Value

Enterprise Value	797.34
Net Debt	65.66
Equity Value	731.67
Shares Outstanding	13.78
Equity Value Per Share	53.10