Discounted Cash Flow (DCF) Analysis Levered

IDT Corporation (IDT)

$28.53

-0.98 (-3.32%)

All numbers are in Millions, Currency in USD

Stock DCF: 9.06 | 28.53 | overvalue

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	1,547.49	1,409.17	1,345.77	1,446.99	1,364.06	1,324.34	1,285.77	1,248.33	1,211.98	1,176.69
Revenue (%)
Operating Cash Flow	6.89	85.14	-29.59	66.62	29.41	29.26	28.41	27.58	26.78	26
Operating Cash Flow (%)
Capital Expenditure	-20.57	-18.68	-16.04	-16.76	-21.88	-17.51	-17	-16.50	-16.02	-15.55
Capital Expenditure (%)
Free Cash Flow	-13.67	66.46	-45.63	49.85	7.53	11.76	11.41	11.08	10.76	10.45

Weighted Average Cost Of Capital

Share price	$ 28.53
Beta	1.147
Diluted Shares Outstanding	26.36
Cost of Debt
Tax Rate	22.52
After-tax Cost of Debt	2.46%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.903
Total Debt	4.61
Total Equity	751.94
Total Capital	756.54
Debt Weighting	0.61
Equity Weighting	99.39
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	1,547.49	1,409.17	1,345.77	1,446.99	1,364.06	1,324.34	1,285.77	1,248.33	1,211.98	1,176.69
Operating Cash Flow	6.89	85.14	-29.59	66.62	29.41	29.26	28.41	27.58	26.78	26
Capital Expenditure	-20.57	-18.68	-16.04	-16.76	-21.88	-17.51	-17	-16.50	-16.02	-15.55
Free Cash Flow	-13.67	66.46	-45.63	49.85	7.53	11.76	11.41	11.08	10.76	10.45
WACC
PV LFCF						10.80	9.63	8.59	7.66	6.83
SUM PV LFCF										43.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.86
Free cash flow (t + 1)	10.66
Terminal Value	155.33
Present Value of Terminal Value	101.60

Intrinsic Value

Enterprise Value	145.12
Net Debt	-93.75
Equity Value	238.87
Shares Outstanding	26.36
Equity Value Per Share	9.06