Discounted Cash Flow (DCF) Analysis Levered

Duck Creek Technologies, Inc. (DCT)

$18.99

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 3.16 | 18.99 | 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	159.67	171.27	211.67	260.35	302.92	356.08	418.57	492.04	578.39	679.90
Revenue (%)
Operating Cash Flow	11.83	14.83	25.72	-8.69	10.73	20.25	23.80	27.98	32.89	38.66
Operating Cash Flow (%)
Capital Expenditure	-8.59	-8.27	-6.75	-2.28	-3.13	-10.90	-12.81	-15.06	-17.71	-20.81
Capital Expenditure (%)
Free Cash Flow	3.24	6.56	18.98	-10.97	7.60	9.35	10.99	12.91	15.18	17.84

Weighted Average Cost Of Capital

Share price	$ 18.99
Beta	0.586
Diluted Shares Outstanding	132.21
Cost of Debt
Tax Rate	-18.34
After-tax Cost of Debt	2.69%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.501
Total Debt	22.43
Total Equity	2,510.57
Total Capital	2,533
Debt Weighting	0.89
Equity Weighting	99.11
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	159.67	171.27	211.67	260.35	302.92	356.08	418.57	492.04	578.39	679.90
Operating Cash Flow	11.83	14.83	25.72	-8.69	10.73	20.25	23.80	27.98	32.89	38.66
Capital Expenditure	-8.59	-8.27	-6.75	-2.28	-3.13	-10.90	-12.81	-15.06	-17.71	-20.81
Free Cash Flow	3.24	6.56	18.98	-10.97	7.60	9.35	10.99	12.91	15.18	17.84
WACC
PV LFCF						8.70	9.51	10.41	11.38	12.45
SUM PV LFCF										52.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.46
Free cash flow (t + 1)	18.20
Terminal Value	333.36
Present Value of Terminal Value	232.63

Intrinsic Value

Enterprise Value	285.09
Net Debt	-132.84
Equity Value	417.92
Shares Outstanding	132.21
Equity Value Per Share	3.16