Discounted Cash Flow (DCF) Analysis Levered

Ziff Davis, Inc. (JCOM)

$142.84

+4.25 (+3.07%)

All numbers are in Millions, Currency in USD

Stock DCF: 215.35 | 142.84 | undervalue

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	874.25	1,117.84	1,207.29	1,372.05	1,489.59	1,705.87	1,953.56	2,237.21	2,562.04	2,934.03
Revenue (%)
Operating Cash Flow	282.39	264.42	401.33	412.54	480.08	516.85	591.90	677.84	776.26	888.97
Operating Cash Flow (%)
Capital Expenditure	-29.07	-41.83	-57.05	-70.63	-95.67	-79.71	-91.28	-104.54	-119.71	-137.10
Capital Expenditure (%)
Free Cash Flow	253.32	222.58	344.28	341.91	384.41	437.15	500.62	573.30	656.55	751.87

Weighted Average Cost Of Capital

Share price	$ 142.84
Beta	1.033
Diluted Shares Outstanding	45.64
Cost of Debt
Tax Rate	34.61
After-tax Cost of Debt	5.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.512
Total Debt	1,611.23
Total Equity	6,519.54
Total Capital	8,130.78
Debt Weighting	19.82
Equity Weighting	80.18
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	874.25	1,117.84	1,207.29	1,372.05	1,489.59	1,705.87	1,953.56	2,237.21	2,562.04	2,934.03
Operating Cash Flow	282.39	264.42	401.33	412.54	480.08	516.85	591.90	677.84	776.26	888.97
Capital Expenditure	-29.07	-41.83	-57.05	-70.63	-95.67	-79.71	-91.28	-104.54	-119.71	-137.10
Free Cash Flow	253.32	222.58	344.28	341.91	384.41	437.15	500.62	573.30	656.55	751.87
WACC
PV LFCF						405.18	430.07	456.50	484.55	514.33
SUM PV LFCF										2,290.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.89
Free cash flow (t + 1)	766.91
Terminal Value	13,020.54
Present Value of Terminal Value	8,906.83

Intrinsic Value

Enterprise Value	11,197.46
Net Debt	1,368.58
Equity Value	9,828.88
Shares Outstanding	45.64
Equity Value Per Share	215.35