Discounted Cash Flow (DCF) Analysis Levered

HealthEquity, Inc. (HQY)

$82.61

-0.39 (-0.47%)
All numbers are in Millions, Currency in USD
Stock DCF: 185.31 | 82.61 | 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 287.24531.99733.57756.56861.751,163.651,571.322,121.812,865.173,868.94
Revenue (%)
Operating Cash Flow 113.42105.86181.62140.99150.65279.88377.94510.34689.14930.57
Operating Cash Flow (%)
Capital Expenditure -15.04-42.07-96.96-137.08-119.13-135.70-183.24-247.43-334.12-451.17
Capital Expenditure (%)
Free Cash Flow 98.3863.7884.653.9131.52144.19194.70262.91355.02479.40

Weighted Average Cost Of Capital

Share price $ 82.61
Beta 0.545
Diluted Shares Outstanding 84.44
Cost of Debt
Tax Rate 31.38
After-tax Cost of Debt 3.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.834
Total Debt 994.49
Total Equity 6,975.75
Total Capital 7,970.24
Debt Weighting 12.48
Equity Weighting 87.52
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 287.24531.99733.57756.56861.751,163.651,571.322,121.812,865.173,868.94
Operating Cash Flow 113.42105.86181.62140.99150.65279.88377.94510.34689.14930.57
Capital Expenditure -15.04-42.07-96.96-137.08-119.13-135.70-183.24-247.43-334.12-451.17
Free Cash Flow 98.3863.7884.653.9131.52144.19194.70262.91355.02479.40
WACC
PV LFCF 135.51171.98218.27277351.55
SUM PV LFCF 1,154.32

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.40
Free cash flow (t + 1) 498.57
Terminal Value 20,773.92
Present Value of Terminal Value 15,233.87

Intrinsic Value

Enterprise Value 16,388.19
Net Debt 740.22
Equity Value 15,647.97
Shares Outstanding 84.44
Equity Value Per Share 185.31