Discounted Cash Flow (DCF) Analysis Levered

Inovalon Holdings, Inc. (INOV)

$41.06

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 6.45 | 41.06 | 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 427.59449.36527.68642.41667.52747.92837.99938.911,051.981,178.68
Revenue (%)
Operating Cash Flow 92.8397.7190.40106.48146.36148.22166.07186.07208.47233.58
Operating Cash Flow (%)
Capital Expenditure -39.03-65.54-64.97-58.94-86.61-87.02-97.50-109.24-122.40-137.14
Capital Expenditure (%)
Free Cash Flow 53.8032.1625.4347.5459.7561.1968.5676.8286.0796.44

Weighted Average Cost Of Capital

Share price $ 41.06
Beta 0.529
Diluted Shares Outstanding 149.72
Cost of Debt
Tax Rate -46.04
After-tax Cost of Debt 6.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.038
Total Debt 897.30
Total Equity 6,147.50
Total Capital 7,044.81
Debt Weighting 12.74
Equity Weighting 87.26
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 427.59449.36527.68642.41667.52747.92837.99938.911,051.981,178.68
Operating Cash Flow 92.8397.7190.40106.48146.36148.22166.07186.07208.47233.58
Capital Expenditure -39.03-65.54-64.97-58.94-86.61-87.02-97.50-109.24-122.40-137.14
Free Cash Flow 53.8032.1625.4347.5459.7561.1968.5676.8286.0796.44
WACC
PV LFCF 57.2259.9562.8265.8168.95
SUM PV LFCF 314.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.94
Free cash flow (t + 1) 98.37
Terminal Value 1,991.27
Present Value of Terminal Value 1,423.74

Intrinsic Value

Enterprise Value 1,738.50
Net Debt 773.42
Equity Value 965.07
Shares Outstanding 149.72
Equity Value Per Share 6.45