Discounted Cash Flow (DCF) Analysis Levered

Datto Holding Corp. (MSP)

$35.18

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.99 | 35.18 | overvalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 387.36458.75518.78618.66723.35845.77988.901,156.251,351.92
Revenue (%)
Operating Cash Flow -10.5611.24108.70125.3774.0386.56101.21118.34138.37
Operating Cash Flow (%)
Capital Expenditure -28.20-38.23-40.47-47.24-56.15-65.65-76.76-89.75-104.94
Capital Expenditure (%)
Free Cash Flow -38.76-26.9968.2378.1317.8920.9224.4528.5933.43

Weighted Average Cost Of Capital

Share price $ 35.18
Beta 0.510
Diluted Shares Outstanding 166.25
Cost of Debt
Tax Rate 16.18
After-tax Cost of Debt 3.49%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.569
Total Debt 40.34
Total Equity 5,848.64
Total Capital 5,888.98
Debt Weighting 0.69
Equity Weighting 99.31
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 387.36458.75518.78618.66723.35845.77988.901,156.251,351.92
Operating Cash Flow -10.5611.24108.70125.3774.0386.56101.21118.34138.37
Capital Expenditure -28.20-38.23-40.47-47.24-56.15-65.65-76.76-89.75-104.94
Free Cash Flow -38.76-26.9968.2378.1317.8920.9224.4528.5933.43
WACC
PV LFCF 13.0314.2915.6917.2118.89
SUM PV LFCF 101.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.55
Free cash flow (t + 1) 34.10
Terminal Value 749.46
Present Value of Terminal Value 545.74

Intrinsic Value

Enterprise Value 647.69
Net Debt -181.08
Equity Value 828.77
Shares Outstanding 166.25
Equity Value Per Share 4.99