Discounted Cash Flow (DCF) Analysis Levered

Digi International Inc. (DGII)

$31.92

-0.73 (-2.24%)
All numbers are in Millions, Currency in USD
Stock DCF: 17.55 | 31.92 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 228.37254.20279.27308.63341.23377.28417.13461.19509.90563.76
Revenue (%)
Operating Cash Flow -2.7828.9634.4857.7235.1738.8842.9947.5352.5558.10
Operating Cash Flow (%)
Capital Expenditure -1.84-9.34-0.90-2.26-4.72-5.22-5.77-6.38-7.05-7.80
Capital Expenditure (%)
Free Cash Flow -4.6219.6333.5855.4730.4533.6737.2241.1545.5050.31

Weighted Average Cost Of Capital

Share price $ 31.92
Beta 1.330
Diluted Shares Outstanding 33.39
Cost of Debt
Tax Rate -15.19
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.973
Total Debt 15.52
Total Equity 1,065.94
Total Capital 1,081.46
Debt Weighting 1.44
Equity Weighting 98.56
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 228.37254.20279.27308.63341.23377.28417.13461.19509.90563.76
Operating Cash Flow -2.7828.9634.4857.7235.1738.8842.9947.5352.5558.10
Capital Expenditure -1.84-9.34-0.90-2.26-4.72-5.22-5.77-6.38-7.05-7.80
Free Cash Flow -4.6219.6333.5855.4730.4533.6737.2241.1545.5050.31
WACC
PV LFCF 30.4530.6330.823131.1931.38
SUM PV LFCF 155.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.90
Free cash flow (t + 1) 51.31
Terminal Value 649.54
Present Value of Terminal Value 405.15

Intrinsic Value

Enterprise Value 560.18
Net Debt -25.99
Equity Value 586.17
Shares Outstanding 33.39
Equity Value Per Share 17.55