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: 5.46 | 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	387.36	458.75	518.78	618.66	723.35	845.77	988.90	1,156.25	1,351.92
Revenue (%)
Operating Cash Flow	-10.56	11.24	108.70	125.37	74.03	86.56	101.21	118.34	138.37
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	-26.99	68.23	78.13	17.89	20.92	24.45	28.59	33.43

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	0.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.103
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	387.36	458.75	518.78	618.66	723.35	845.77	988.90	1,156.25	1,351.92
Operating Cash Flow	-10.56	11.24	108.70	125.37	74.03	86.56	101.21	118.34	138.37
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	-26.99	68.23	78.13	17.89	20.92	24.45	28.59	33.43
WACC
PV LFCF					17.89	19.72	21.74	23.96	26.41
SUM PV LFCF									103.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.07
Free cash flow (t + 1)	34.10
Terminal Value	837.85
Present Value of Terminal Value	624.03

Intrinsic Value

Enterprise Value	727.46
Net Debt	-181.08
Equity Value	908.54
Shares Outstanding	166.25
Equity Value Per Share	5.46