Discounted Cash Flow (DCF) Analysis Levered

GK Software SE (GKS.DE)

141.8 €

-4.80 (-3.27%)

All numbers are in Millions, Currency in USD

Stock DCF: 34.01 | 141.8 | 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	91.55	107.46	115.45	117.56	130.85	143.26	156.84	171.72	188.01	205.84
Revenue (%)
Operating Cash Flow	15.22	-5.67	-0.21	17.71	23.22	12.60	13.80	15.10	16.54	18.11
Operating Cash Flow (%)
Capital Expenditure	-8.16	-11.98	-3.65	-2.68	-2.52	-7.86	-8.60	-9.42	-10.31	-11.29
Capital Expenditure (%)
Free Cash Flow	7.06	-17.65	-3.86	15.03	20.70	4.74	5.19	5.69	6.23	6.82

Weighted Average Cost Of Capital

Share price	$ 141.8
Beta	1.947
Diluted Shares Outstanding	2.38
Cost of Debt
Tax Rate	20.04
After-tax Cost of Debt	0.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.710
Total Debt	26.94
Total Equity	337.63
Total Capital	364.57
Debt Weighting	7.39
Equity Weighting	92.61
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	91.55	107.46	115.45	117.56	130.85	143.26	156.84	171.72	188.01	205.84
Operating Cash Flow	15.22	-5.67	-0.21	17.71	23.22	12.60	13.80	15.10	16.54	18.11
Capital Expenditure	-8.16	-11.98	-3.65	-2.68	-2.52	-7.86	-8.60	-9.42	-10.31	-11.29
Free Cash Flow	7.06	-17.65	-3.86	15.03	20.70	4.74	5.19	5.69	6.23	6.82
WACC
PV LFCF						4.24	4.15	4.07	3.98	3.90
SUM PV LFCF										20.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.80
Free cash flow (t + 1)	6.95
Terminal Value	70.94
Present Value of Terminal Value	40.61

Intrinsic Value

Enterprise Value	60.97
Net Debt	-20.01
Equity Value	80.97
Shares Outstanding	2.38
Equity Value Per Share	34.01