Discounted Cash Flow (DCF) Analysis Levered

Forrester Research, Inc. (FORR)

$44.28

-0.41 (-0.92%)

All numbers are in Millions, Currency in USD

Stock DCF: 81.11 | 44.28 | undervalue

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	337.67	357.58	461.70	448.98	494.32	546.66	604.54	668.56	739.35	817.64
Revenue (%)
Operating Cash Flow	37.49	38.42	48.41	47.75	107.07	70.66	78.14	86.41	95.56	105.68
Operating Cash Flow (%)
Capital Expenditure	-7.86	-5.05	-11.89	-8.91	-10.74	-11.45	-12.66	-14	-15.49	-17.13
Capital Expenditure (%)
Free Cash Flow	29.63	33.37	36.52	38.85	96.32	59.21	65.48	72.41	80.08	88.56

Weighted Average Cost Of Capital

Share price	$ 44.28
Beta	0.923
Diluted Shares Outstanding	18.93
Cost of Debt
Tax Rate	25.15
After-tax Cost of Debt	4,213,646.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.248
Total Debt	0
Total Equity	838.44
Total Capital	838.44
Debt Weighting	0.00
Equity Weighting	100.00
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	337.67	357.58	461.70	448.98	494.32	546.66	604.54	668.56	739.35	817.64
Operating Cash Flow	37.49	38.42	48.41	47.75	107.07	70.66	78.14	86.41	95.56	105.68
Capital Expenditure	-7.86	-5.05	-11.89	-8.91	-10.74	-11.45	-12.66	-14	-15.49	-17.13
Free Cash Flow	29.63	33.37	36.52	38.85	96.32	59.21	65.48	72.41	80.08	88.56
WACC
PV LFCF						55.01	56.52	58.08	59.67	61.31
SUM PV LFCF										290.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.63
Free cash flow (t + 1)	90.33
Terminal Value	1,604.44
Present Value of Terminal Value	1,110.85

Intrinsic Value

Enterprise Value	1,401.45
Net Debt	-134.28
Equity Value	1,535.73
Shares Outstanding	18.93
Equity Value Per Share	81.11