Discounted Cash Flow (DCF) Analysis Levered
Mercury Systems, Inc. (MRCY)
$40.55
+1.06 (+-%)
All numbers are in Millions, Currency in USD
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 | 493.18 | 654.74 | 796.61 | 924 | 988.20 | 1,179.33 | 1,407.42 | 1,679.64 | 2,004.50 | 2,392.20 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 43.32 | 97.52 | 115.18 | 97.25 | -18.87 | 110.27 | 131.60 | 157.05 | 187.43 | 223.68 |
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 | 28.22 | 70.83 | 71.89 | 51.65 | -46.52 | 62.37 | 74.44 | 88.83 | 106.02 | 126.52 |
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 | 493.18 | 654.74 | 796.61 | 924 | 988.20 | 1,179.33 | 1,407.42 | 1,679.64 | 2,004.50 | 2,392.20 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 43.32 | 97.52 | 115.18 | 97.25 | -18.87 | 110.27 | 131.60 | 157.05 | 187.43 | 223.68 |
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 | 28.22 | 70.83 | 71.89 | 51.65 | -46.52 | 62.37 | 74.44 | 88.83 | 106.02 | 126.52 |
WACC | ||||||||||
PV LFCF | 58.31 | 65.05 | 72.58 | 80.97 | 90.33 | |||||
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 |