Discounted Cash Flow (DCF) Analysis Levered

MIND C.T.I. Ltd (MNDO)

$1.95

+0.01 (+0.52%)

All numbers are in Millions, Currency in USD

Stock DCF: 6.24 | 1.95 | 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	18.14	22.66	23.37	26.33	21.55	22.77	24.06	25.41	26.85	28.37
Revenue (%)
Operating Cash Flow	4.47	6.68	6.50	6.90	4.56	5.89	6.22	6.57	6.94	7.33
Operating Cash Flow (%)
Capital Expenditure	-0.05	-0.05	-0.07	-0.08	-0.13	-0.08	-0.08	-0.09	-0.09	-0.10
Capital Expenditure (%)
Free Cash Flow	4.42	6.63	6.43	6.82	4.43	5.81	6.14	6.48	6.85	7.24

Weighted Average Cost Of Capital

Share price	$ 1.95
Beta	0.792
Diluted Shares Outstanding	19.91
Cost of Debt
Tax Rate	5.88
After-tax Cost of Debt	9.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.433
Total Debt	0.89
Total Equity	38.82
Total Capital	39.70
Debt Weighting	2.23
Equity Weighting	97.77
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	18.14	22.66	23.37	26.33	21.55	22.77	24.06	25.41	26.85	28.37
Operating Cash Flow	4.47	6.68	6.50	6.90	4.56	5.89	6.22	6.57	6.94	7.33
Capital Expenditure	-0.05	-0.05	-0.07	-0.08	-0.13	-0.08	-0.08	-0.09	-0.09	-0.10
Free Cash Flow	4.42	6.63	6.43	6.82	4.43	5.81	6.14	6.48	6.85	7.24
WACC
PV LFCF						5.40	5.31	5.22	5.13	5.04
SUM PV LFCF										26.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.49
Free cash flow (t + 1)	7.38
Terminal Value	134.47
Present Value of Terminal Value	93.71

Intrinsic Value

Enterprise Value	119.82
Net Debt	-4.38
Equity Value	124.20
Shares Outstanding	19.91
Equity Value Per Share	6.24