Discounted Cash Flow (DCF) Analysis Levered

Computer Programs and Systems, Inc. (CPSI)

$ 30.52

+0.24 (+0.79%)

Stock DCF: 79.11 | 30.52 | 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	$ 30.52
Beta	0.683
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	4.709
Total Debt	78.33
Total Equity	420.50
Total Capital	498.84
Debt Weighting	15.70
Equity Weighting	84.30
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						24.51	23.40	22.34	21.33	20.36
SUM PV LFCF										111.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.51
Free cash flow (t + 1)	26.03
Terminal Value	1,301.27
Present Value of Terminal Value	1,043.71

Intrinsic Value

Enterprise Value	1,155.65
Net Debt	65.66
Equity Value	1,089.98
Shares Outstanding	13.78
Equity Value Per Share	79.11