Discounted Cash Flow (DCF) Analysis Levered

Five9, Inc. (FIVN)

$79.59

+3.37 (+4.42%)

All numbers are in Millions, Currency in USD

Stock DCF: 36.93 | 79.59 | 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	257.66	328.01	434.91	609.59	778.85	1,027.73	1,356.15	1,789.51	2,361.36	3,115.95
Revenue (%)
Operating Cash Flow	38.62	51.22	67.30	28.48	88.86	127.77	168.60	222.48	293.58	387.39
Operating Cash Flow (%)
Capital Expenditure	-9.26	-19.23	-30.42	-42.22	-56.17	-62.87	-82.97	-109.48	-144.46	-190.63
Capital Expenditure (%)
Free Cash Flow	29.36	31.99	36.88	-13.73	32.69	64.90	85.64	113	149.12	196.77

Weighted Average Cost Of Capital

Share price	$ 79.59
Beta	0.774
Diluted Shares Outstanding	67.80
Cost of Debt
Tax Rate	-4.86
After-tax Cost of Debt	4.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.809
Total Debt	790.56
Total Equity	5,396.20
Total Capital	6,186.76
Debt Weighting	12.78
Equity Weighting	87.22
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	257.66	328.01	434.91	609.59	778.85	1,027.73	1,356.15	1,789.51	2,361.36	3,115.95
Operating Cash Flow	38.62	51.22	67.30	28.48	88.86	127.77	168.60	222.48	293.58	387.39
Capital Expenditure	-9.26	-19.23	-30.42	-42.22	-56.17	-62.87	-82.97	-109.48	-144.46	-190.63
Free Cash Flow	29.36	31.99	36.88	-13.73	32.69	64.90	85.64	113	149.12	196.77
WACC
PV LFCF						60.46	74.33	91.37	112.33	138.08
SUM PV LFCF										476.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.34
Free cash flow (t + 1)	200.70
Terminal Value	3,758.46
Present Value of Terminal Value	2,637.55

Intrinsic Value

Enterprise Value	3,114.12
Net Debt	610.04
Equity Value	2,504.08
Shares Outstanding	67.80
Equity Value Per Share	36.93