Discounted Cash Flow (DCF) Analysis Levered

HealthEquity, Inc. (HQY)

$56.02

-1.66 (-2.88%)

All numbers are in Millions, Currency in USD

Stock DCF: 105.85 | 56.02 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	287.24	531.99	733.57	756.56	861.75	1,163.65	1,571.32	2,121.81	2,865.17	3,868.94
Revenue (%)
Operating Cash Flow	113.42	105.01	181.62	140.99	150.65	279.51	377.44	509.67	688.22	929.33
Operating Cash Flow (%)
Capital Expenditure	-15.04	-42.07	-96.96	-137.08	-48.54	-116.63	-157.50	-212.67	-287.18	-387.79
Capital Expenditure (%)
Free Cash Flow	98.38	62.94	84.65	3.91	102.11	162.88	219.94	297	401.04	541.54

Weighted Average Cost Of Capital

Share price	$ 56.02
Beta	0.797
Diluted Shares Outstanding	84.44
Cost of Debt
Tax Rate	-31.38
After-tax Cost of Debt	4.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.140
Total Debt	994.49
Total Equity	4,730.44
Total Capital	5,724.93
Debt Weighting	17.37
Equity Weighting	82.63
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Actual	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	287.24	531.99	733.57	756.56	861.75	1,163.65	1,571.32	2,121.81	2,865.17	3,868.94
Operating Cash Flow	113.42	105.01	181.62	140.99	150.65	279.51	377.44	509.67	688.22	929.33
Capital Expenditure	-15.04	-42.07	-96.96	-137.08	-48.54	-116.63	-157.50	-212.67	-287.18	-387.79
Free Cash Flow	98.38	62.94	84.65	3.91	102.11	162.88	219.94	297	401.04	541.54
WACC
PV LFCF						133.89	169.37	214.24	271.01	342.81
SUM PV LFCF										1,289.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.75
Free cash flow (t + 1)	552.38
Terminal Value	11,628.96
Present Value of Terminal Value	8,388.83

Intrinsic Value

Enterprise Value	9,678.05
Net Debt	740.22
Equity Value	8,937.83
Shares Outstanding	84.44
Equity Value Per Share	105.85