Discounted Cash Flow (DCF) Analysis Levered

CyberArk Software Ltd. (CYBR)

$172.94

+6.33 (+3.80%)

All numbers are in Millions, Currency in USD

Stock DCF: 77.10 | 172.94 | 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	343.20	433.89	464.43	502.92	591.71	679.59	780.52	896.44	1,029.57	1,182.48
Revenue (%)
Operating Cash Flow	130.12	141.71	106.77	74.74	49.71	158.79	182.37	209.46	240.56	276.29
Operating Cash Flow (%)
Capital Expenditure	-8.61	-7.04	-7.17	-8.93	-12.52	-13	-14.93	-17.15	-19.70	-22.62
Capital Expenditure (%)
Free Cash Flow	121.51	134.67	99.59	65.81	37.19	145.79	167.44	192.30	220.86	253.67

Weighted Average Cost Of Capital

Share price	$ 172.94
Beta	1.037
Diluted Shares Outstanding	40.58
Cost of Debt
Tax Rate	4.85
After-tax Cost of Debt	0.49%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.245
Total Debt	577.20
Total Equity	7,018.42
Total Capital	7,595.63
Debt Weighting	7.60
Equity Weighting	92.40
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	343.20	433.89	464.43	502.92	591.71	679.59	780.52	896.44	1,029.57	1,182.48
Operating Cash Flow	130.12	141.71	106.77	74.74	49.71	158.79	182.37	209.46	240.56	276.29
Capital Expenditure	-8.61	-7.04	-7.17	-8.93	-12.52	-13	-14.93	-17.15	-19.70	-22.62
Free Cash Flow	121.51	134.67	99.59	65.81	37.19	145.79	167.44	192.30	220.86	253.67
WACC
PV LFCF						134.27	142.02	150.22	158.90	168.08
SUM PV LFCF										753.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.58
Free cash flow (t + 1)	258.74
Terminal Value	3,932.21
Present Value of Terminal Value	2,605.48

Intrinsic Value

Enterprise Value	3,358.97
Net Debt	229.86
Equity Value	3,129.11
Shares Outstanding	40.58
Equity Value Per Share	77.10