Discounted Cash Flow (DCF) Analysis Levered

ExlService Holdings, Inc. (EXLS)

$173.15

+2.27 (+1.33%)
All numbers are in Millions, Currency in USD
Stock DCF: 109.25 | 173.15 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 762.31883.11991.35958.431,122.291,239.801,369.601,5131,671.401,846.40
Revenue (%)
Operating Cash Flow 113.1492.43168.42202.97184.39198.13218.88241.79267.11295.07
Operating Cash Flow (%)
Capital Expenditure -35.15-40.44-40.14-42.22-37.25-51.98-57.42-63.44-70.08-77.41
Capital Expenditure (%)
Free Cash Flow 77.9952128.28160.75147.14146.15161.45178.36197.03217.66

Weighted Average Cost Of Capital

Share price $ 173.15
Beta 0.928
Diluted Shares Outstanding 34.31
Cost of Debt
Tax Rate 21.70
After-tax Cost of Debt 1.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.229
Total Debt 347.01
Total Equity 5,940.07
Total Capital 6,287.07
Debt Weighting 5.52
Equity Weighting 94.48
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 762.31883.11991.35958.431,122.291,239.801,369.601,5131,671.401,846.40
Operating Cash Flow 113.1492.43168.42202.97184.39198.13218.88241.79267.11295.07
Capital Expenditure -35.15-40.44-40.14-42.22-37.25-51.98-57.42-63.44-70.08-77.41
Free Cash Flow 77.9952128.28160.75147.14146.15161.45178.36197.03217.66
WACC
PV LFCF 119.57123.54127.64131.88136.26
SUM PV LFCF 730.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.92
Free cash flow (t + 1) 222.01
Terminal Value 4,512.41
Present Value of Terminal Value 3,229.34

Intrinsic Value

Enterprise Value 3,959.71
Net Debt 211.67
Equity Value 3,748.03
Shares Outstanding 34.31
Equity Value Per Share 109.25