Discounted Cash Flow (DCF) Analysis Levered

Magic Software Enterprises Ltd. (MGIC)

$11.2

+0.04 (+0.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 31.90 | 11.2 | 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 284.38325.63371.19480.32566.79674.34802.30954.541,135.671,351.17
Revenue (%)
Operating Cash Flow 24.0545.9552.3040.4949.5272.5986.37102.75122.25145.45
Operating Cash Flow (%)
Capital Expenditure -4.53-5.52-6.07-4.63-7.66-9.77-11.62-13.82-16.45-19.57
Capital Expenditure (%)
Free Cash Flow 19.5240.4346.2235.8641.8662.8374.7588.93105.81125.88

Weighted Average Cost Of Capital

Share price $ 11.2
Beta 1.158
Diluted Shares Outstanding 49.14
Cost of Debt
Tax Rate 29.88
After-tax Cost of Debt 3.22%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.717
Total Debt 79.79
Total Equity 550.35
Total Capital 630.14
Debt Weighting 12.66
Equity Weighting 87.34
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 284.38325.63371.19480.32566.79674.34802.30954.541,135.671,351.17
Operating Cash Flow 24.0545.9552.3040.4949.5272.5986.37102.75122.25145.45
Capital Expenditure -4.53-5.52-6.07-4.63-7.66-9.77-11.62-13.82-16.45-19.57
Free Cash Flow 19.5240.4346.2235.8641.8662.8374.7588.93105.81125.88
WACC
PV LFCF 37.6941.1844.9949.1653.71
SUM PV LFCF 347.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.89
Free cash flow (t + 1) 128.40
Terminal Value 1,863.59
Present Value of Terminal Value 1,217.34

Intrinsic Value

Enterprise Value 1,564.44
Net Debt -3.27
Equity Value 1,567.71
Shares Outstanding 49.14
Equity Value Per Share 31.90