Discounted Cash Flow (DCF) Analysis Levered

Mitek Systems, Inc. (MITK)

$10.85

+0.17 (+1.59%)

All numbers are in Millions, Currency in USD

Stock DCF: 19.46 | 10.85 | 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	63.56	84.59	101.31	119.80	143.94	176.78	217.12	266.65	327.48	402.20
Revenue (%)
Operating Cash Flow	5.63	14.25	24.12	37.34	26.35	35	42.98	52.79	64.83	79.62
Operating Cash Flow (%)
Capital Expenditure	-4.31	-1.06	-0.80	-1.39	-1.13	-3.81	-4.67	-5.74	-7.05	-8.66
Capital Expenditure (%)
Free Cash Flow	1.32	13.19	23.32	35.95	25.23	31.19	38.31	47.05	57.78	70.96

Weighted Average Cost Of Capital

Share price	$ 10.85
Beta	0.927
Diluted Shares Outstanding	45.78
Cost of Debt
Tax Rate	-10.78
After-tax Cost of Debt	6.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.630
Total Debt	134.19
Total Equity	496.71
Total Capital	630.90
Debt Weighting	21.27
Equity Weighting	78.73
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	63.56	84.59	101.31	119.80	143.94	176.78	217.12	266.65	327.48	402.20
Operating Cash Flow	5.63	14.25	24.12	37.34	26.35	35	42.98	52.79	64.83	79.62
Capital Expenditure	-4.31	-1.06	-0.80	-1.39	-1.13	-3.81	-4.67	-5.74	-7.05	-8.66
Free Cash Flow	1.32	13.19	23.32	35.95	25.23	31.19	38.31	47.05	57.78	70.96
WACC
PV LFCF						28.85	32.78	37.24	42.31	48.07
SUM PV LFCF										189.27

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.10
Free cash flow (t + 1)	72.38
Terminal Value	1,186.60
Present Value of Terminal Value	803.85

Intrinsic Value

Enterprise Value	993.11
Net Debt	102.13
Equity Value	890.99
Shares Outstanding	45.78
Equity Value Per Share	19.46