Discounted Cash Flow (DCF) Analysis Levered

Mercury Systems, Inc. (MRCY)

$40.55

+1.06 (+-%)
All numbers are in Millions, Currency in USD
Stock DCF: 31.58 | 40.55 | overvalue

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 493.18654.74796.61924988.201,179.331,407.421,679.642,004.502,392.20
Revenue (%)
Operating Cash Flow 43.3297.52115.1897.25-18.87110.27131.60157.05187.43223.68
Operating Cash Flow (%)
Capital Expenditure -15.11-26.69-43.29-45.60-27.66-47.90-57.16-68.22-81.41-97.16
Capital Expenditure (%)
Free Cash Flow 28.2270.8371.8951.65-46.5262.3774.4488.83106.02126.52

Weighted Average Cost Of Capital

Share price $ 40.55
Beta 0.998
Diluted Shares Outstanding 55.90
Cost of Debt
Tax Rate 38.71
After-tax Cost of Debt 0.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.412
Total Debt 521.39
Total Equity 2,266.79
Total Capital 2,788.17
Debt Weighting 18.70
Equity Weighting 81.30
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 493.18654.74796.61924988.201,179.331,407.421,679.642,004.502,392.20
Operating Cash Flow 43.3297.52115.1897.25-18.87110.27131.60157.05187.43223.68
Capital Expenditure -15.11-26.69-43.29-45.60-27.66-47.90-57.16-68.22-81.41-97.16
Free Cash Flow 28.2270.8371.8951.65-46.5262.3774.4488.83106.02126.52
WACC
PV LFCF 58.3165.0572.5880.9790.33
SUM PV LFCF 367.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.97
Free cash flow (t + 1) 129.05
Terminal Value 2,596.60
Present Value of Terminal Value 1,853.94

Intrinsic Value

Enterprise Value 2,221.18
Net Debt 455.73
Equity Value 1,765.44
Shares Outstanding 55.90
Equity Value Per Share 31.58