Discounted Cash Flow (DCF) Analysis Levered

i3 Verticals, Inc. (IIIV)

$19.97

-0.16 (-0.79%)

All numbers are in Millions, Currency in USD

Stock DCF: 22.72 | 19.97 | 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	376.31	150.13	224.12	317.86	370.24	414.19	463.35	518.35	579.89	648.72
Revenue (%)
Operating Cash Flow	26.60	23.72	46.77	45.85	34.50	55.90	62.53	69.96	78.26	87.55
Operating Cash Flow (%)
Capital Expenditure	-3.11	-5.95	-8.20	-12.45	-11.45	-12.81	-14.33	-16.03	-17.93	-20.06
Capital Expenditure (%)
Free Cash Flow	23.49	17.77	38.57	33.40	23.06	43.09	48.21	53.93	60.33	67.49

Weighted Average Cost Of Capital

Share price	$ 19.97
Beta	1.400
Diluted Shares Outstanding	33.25
Cost of Debt
Tax Rate	78.96
After-tax Cost of Debt	1.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.764
Total Debt	400.02
Total Equity	663.94
Total Capital	1,063.96
Debt Weighting	37.60
Equity Weighting	62.40
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	376.31	150.13	224.12	317.86	370.24	414.19	463.35	518.35	579.89	648.72
Operating Cash Flow	26.60	23.72	46.77	45.85	34.50	55.90	62.53	69.96	78.26	87.55
Capital Expenditure	-3.11	-5.95	-8.20	-12.45	-11.45	-12.81	-14.33	-16.03	-17.93	-20.06
Free Cash Flow	23.49	17.77	38.57	33.40	23.06	43.09	48.21	53.93	60.33	67.49
WACC
PV LFCF						40.19	41.94	43.77	45.67	47.65
SUM PV LFCF										219.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.21
Free cash flow (t + 1)	68.84
Terminal Value	1,321.38
Present Value of Terminal Value	932.94

Intrinsic Value

Enterprise Value	1,152.16
Net Debt	396.91
Equity Value	755.25
Shares Outstanding	33.25
Equity Value Per Share	22.72