Discounted Cash Flow (DCF) Analysis Levered

NetSol Technologies, Inc. (NTWK)

$3.16

-0.04 (-1.25%)

All numbers are in Millions, Currency in USD

Stock DCF: 17.83 | 3.16 | undervalue

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	60.93	67.82	56.37	54.92	57.25	56.69	56.13	55.59	55.04	54.50
Revenue (%)
Operating Cash Flow	15.71	4.93	3.97	15.73	3.06	8.40	8.32	8.24	8.16	8.08
Operating Cash Flow (%)
Capital Expenditure	-2.45	-2.73	-1.38	-2.55	-2.61	-2.23	-2.21	-2.19	-2.17	-2.15
Capital Expenditure (%)
Free Cash Flow	13.26	2.21	2.60	13.17	0.45	6.17	6.11	6.05	5.99	5.93

Weighted Average Cost Of Capital

Share price	$ 3.16
Beta	0.690
Diluted Shares Outstanding	11.25
Cost of Debt
Tax Rate	140.73
After-tax Cost of Debt	-1.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.790
Total Debt	10.04
Total Equity	35.55
Total Capital	45.59
Debt Weighting	22.02
Equity Weighting	77.98
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	60.93	67.82	56.37	54.92	57.25	56.69	56.13	55.59	55.04	54.50
Operating Cash Flow	15.71	4.93	3.97	15.73	3.06	8.40	8.32	8.24	8.16	8.08
Capital Expenditure	-2.45	-2.73	-1.38	-2.55	-2.61	-2.23	-2.21	-2.19	-2.17	-2.15
Free Cash Flow	13.26	2.21	2.60	13.17	0.45	6.17	6.11	6.05	5.99	5.93
WACC
PV LFCF						5.88	5.54	5.23	4.93	4.66
SUM PV LFCF										26.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.96
Free cash flow (t + 1)	6.05
Terminal Value	204.37
Present Value of Terminal Value	160.43

Intrinsic Value

Enterprise Value	186.67
Net Debt	-13.92
Equity Value	200.60
Shares Outstanding	11.25
Equity Value Per Share	17.83