Discounted Cash Flow (DCF) Analysis Levered

HealthEquity, Inc. (HQY)

$59.26

-1.05 (-1.74%)
All numbers are in Millions, Currency in USD
Stock DCF: 142.37 | 59.26 | undervalue

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 229.53287.24531.99733.57756.561,042.871,437.541,981.572,731.483,765.19
Revenue (%)
Operating Cash Flow 81.70113.42105.01181.62140.99288.28397.38547.77755.071,040.82
Operating Cash Flow (%)
Capital Expenditure -33.38-15.04-42.07-96.96-137.08-123.11-169.71-233.93-322.46-444.50
Capital Expenditure (%)
Free Cash Flow 48.3298.3862.9484.653.91165.17227.68313.84432.61596.32

Weighted Average Cost Of Capital

Share price $ 59.26
Beta 0.791
Diluted Shares Outstanding 75.68
Cost of Debt
Tax Rate 33.64
After-tax Cost of Debt 2.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.285
Total Debt 1,008.23
Total Equity 4,484.74
Total Capital 5,492.97
Debt Weighting 18.35
Equity Weighting 81.65
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 229.53287.24531.99733.57756.561,042.871,437.541,981.572,731.483,765.19
Operating Cash Flow 81.70113.42105.01181.62140.99288.28397.38547.77755.071,040.82
Capital Expenditure -33.38-15.04-42.07-96.96-137.08-123.11-169.71-233.93-322.46-444.50
Free Cash Flow 48.3298.3862.9484.653.91165.17227.68313.84432.61596.32
WACC
PV LFCF 155.25201.15260.62337.67437.50
SUM PV LFCF 1,392.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.39
Free cash flow (t + 1) 608.25
Terminal Value 13,855.39
Present Value of Terminal Value 10,165.17

Intrinsic Value

Enterprise Value 11,557.35
Net Debt 782.82
Equity Value 10,774.53
Shares Outstanding 75.68
Equity Value Per Share 142.37