Discounted Cash Flow (DCF) Analysis Levered

Micro Focus International plc (MFGP)

$6.48

-0.03 (-0.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 105.44 | 6.48 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,380.703,208.683,348.403,0012,899.903,791.664,957.646,482.188,475.5311,081.86
Revenue (%)
Operating Cash Flow 452.38364.43738.69662.05639.75836.481,093.701,430.031,869.782,444.77
Operating Cash Flow (%)
Capital Expenditure -43.16-122.50-56.30-26.30-65.20-89.11-116.51-152.33-199.18-260.43
Capital Expenditure (%)
Free Cash Flow 409.21241.93682.39635.75574.55747.37977.201,277.701,670.612,184.34

Weighted Average Cost Of Capital

Share price $ 6.48
Beta 1.741
Diluted Shares Outstanding 336.50
Cost of Debt
Tax Rate 18.04
After-tax Cost of Debt 4.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.769
Total Debt 4,742.90
Total Equity 2,180.52
Total Capital 6,923.42
Debt Weighting 68.51
Equity Weighting 31.49
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,380.703,208.683,348.403,0012,899.903,791.664,957.646,482.188,475.5311,081.86
Operating Cash Flow 452.38364.43738.69662.05639.75836.481,093.701,430.031,869.782,444.77
Capital Expenditure -43.16-122.50-56.30-26.30-65.20-89.11-116.51-152.33-199.18-260.43
Free Cash Flow 409.21241.93682.39635.75574.55747.37977.201,277.701,670.612,184.34
WACC
PV LFCF 700.38858.171,051.511,288.411,578.68
SUM PV LFCF 5,477.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.71
Free cash flow (t + 1) 2,228.02
Terminal Value 47,304.14
Present Value of Terminal Value 34,187.99

Intrinsic Value

Enterprise Value 39,665.13
Net Debt 4,184.50
Equity Value 35,480.63
Shares Outstanding 336.50
Equity Value Per Share 105.44