Discounted Cash Flow (DCF) Analysis Levered

Immersion Corporation (IMMR)

$ 5.76
-0.03 (-0.52%)
Stock DCF: -9.02 | 5.76 | overvalue

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 57.0935.01110.9835.9530.4637.7246.7257.8671.6688.75
Revenue (%)
Operating Cash Flow 22.04-43.8369.92-34.100.02-8.93-11.06-13.69-16.96-21
Operating Cash Flow (%)
Capital Expenditure -0.34-0.12-0.07-0.15-0.05-0.12-0.15-0.18-0.23-0.28
Capital Expenditure (%)
Free Cash Flow 21.70-43.9569.85-34.25-0.03-9.05-11.21-13.88-17.19-21.29

Weighted Average Cost Of Capital

Share price $ 5.76
Beta 1.857
Diluted Shares Outstanding 28.48
Cost of Debt
Tax Rate -70.97
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.272
Total Debt 1.38
Total Equity 164.03
Total Capital 165.41
Debt Weighting 0.84
Equity Weighting 99.16
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 57.0935.01110.9835.9530.4637.7246.7257.8671.6688.75
Operating Cash Flow 22.04-43.8369.92-34.100.02-8.93-11.06-13.69-16.96-21
Capital Expenditure -0.34-0.12-0.07-0.15-0.05-0.12-0.15-0.18-0.23-0.28
Free Cash Flow 21.70-43.9569.85-34.25-0.03-9.05-11.21-13.88-17.19-21.29
WACC
PV LFCF -8.21-9.22-10.36-11.64-13.08
SUM PV LFCF -52.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.23
Free cash flow (t + 1) -22.35
Terminal Value -427.38
Present Value of Terminal Value -262.61

Intrinsic Value

Enterprise Value -315.13
Net Debt -58.14
Equity Value -256.99
Shares Outstanding 28.48
Equity Value Per Share -9.02