Discounted Cash Flow (DCF) Analysis Levered

NICE Ltd. (NICE)

$223.71

+1.15 (+0.52%)

All numbers are in Millions, Currency in USD

Stock DCF: 335.40 | 223.71 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	1,332.15	1,444.52	1,573.91	1,648.02	1,921.15	2,106.90	2,310.60	2,534.01	2,779.01	3,047.70
Revenue (%)
Operating Cash Flow	394.66	396.61	374.16	480.31	461.82	564.81	619.42	679.30	744.98	817.01
Operating Cash Flow (%)
Capital Expenditure	-67.83	-63.67	-61.97	-63.28	-67.21	-87.54	-96	-105.29	-115.47	-126.63
Capital Expenditure (%)
Free Cash Flow	326.84	332.94	312.19	417.02	394.61	477.27	523.41	574.02	629.52	690.38

Weighted Average Cost Of Capital

Share price	$ 223.71
Beta	0.280
Diluted Shares Outstanding	62.71
Cost of Debt
Tax Rate	17.20
After-tax Cost of Debt	4.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.962
Total Debt	878.52
Total Equity	14,028.85
Total Capital	14,907.37
Debt Weighting	5.89
Equity Weighting	94.11
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	1,332.15	1,444.52	1,573.91	1,648.02	1,921.15	2,106.90	2,310.60	2,534.01	2,779.01	3,047.70
Operating Cash Flow	394.66	396.61	374.16	480.31	461.82	564.81	619.42	679.30	744.98	817.01
Capital Expenditure	-67.83	-63.67	-61.97	-63.28	-67.21	-87.54	-96	-105.29	-115.47	-126.63
Free Cash Flow	326.84	332.94	312.19	417.02	394.61	477.27	523.41	574.02	629.52	690.38
WACC
PV LFCF						454.93	475.56	497.13	519.68	543.26
SUM PV LFCF										2,490.57

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.91
Free cash flow (t + 1)	704.19
Terminal Value	24,198.94
Present Value of Terminal Value	19,041.97

Intrinsic Value

Enterprise Value	21,532.54
Net Debt	499.86
Equity Value	21,032.68
Shares Outstanding	62.71
Equity Value Per Share	335.40