Discounted Cash Flow (DCF) Analysis Levered

Information Services Corporation (ISV.TO)

$21.06

+0.03 (+0.14%)

All numbers are in Millions, Currency in USD

Stock DCF: 108.48 | 21.06 | 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	119.13	132.97	136.72	169.38	189.89	213.84	240.80	271.16	305.36	343.86
Revenue (%)
Operating Cash Flow	27.71	23.63	41.20	61.21	43.54	55.70	62.72	70.63	79.53	89.56
Operating Cash Flow (%)
Capital Expenditure	-2.78	-2.83	-1.44	-2.23	-1.46	-3.25	-3.66	-4.12	-4.64	-5.23
Capital Expenditure (%)
Free Cash Flow	24.93	20.80	39.76	58.99	42.07	52.45	59.06	66.51	74.89	84.33

Weighted Average Cost Of Capital

Share price	$ 21.06
Beta	0.540
Diluted Shares Outstanding	18.02
Cost of Debt
Tax Rate	28.47
After-tax Cost of Debt	3.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.246
Total Debt	74.85
Total Equity	379.45
Total Capital	454.30
Debt Weighting	16.48
Equity Weighting	83.52
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	119.13	132.97	136.72	169.38	189.89	213.84	240.80	271.16	305.36	343.86
Operating Cash Flow	27.71	23.63	41.20	61.21	43.54	55.70	62.72	70.63	79.53	89.56
Capital Expenditure	-2.78	-2.83	-1.44	-2.23	-1.46	-3.25	-3.66	-4.12	-4.64	-5.23
Free Cash Flow	24.93	20.80	39.76	58.99	42.07	52.45	59.06	66.51	74.89	84.33
WACC
PV LFCF						44.30	47.15	50.19	53.43	56.87
SUM PV LFCF										281.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.79
Free cash flow (t + 1)	86.02
Terminal Value	2,269.68
Present Value of Terminal Value	1,712.94

Intrinsic Value

Enterprise Value	1,994.90
Net Debt	40.38
Equity Value	1,954.52
Shares Outstanding	18.02
Equity Value Per Share	108.48