Discounted Cash Flow (DCF) Analysis Levered

NetSol Technologies, Inc. (NTWK)

$3.08

-0.02 (-0.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 16.79 | 3.08 | 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 60.9367.8256.3754.9257.2556.6956.1355.5955.0454.50
Revenue (%)
Operating Cash Flow 15.714.933.9715.733.068.408.328.248.168.08
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 13.262.212.6013.170.456.176.116.055.995.93

Weighted Average Cost Of Capital

Share price $ 3.08
Beta 0.741
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 7.095
Total Debt 10.04
Total Equity 34.65
Total Capital 44.69
Debt Weighting 22.46
Equity Weighting 77.54
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 60.9367.8256.3754.9257.2556.6956.1355.5955.0454.50
Operating Cash Flow 15.714.933.9715.733.068.408.328.248.168.08
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 13.262.212.6013.170.456.176.116.055.995.93
WACC
PV LFCF 5.875.525.204.904.61
SUM PV LFCF 26.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.16
Free cash flow (t + 1) 6.05
Terminal Value 191.43
Present Value of Terminal Value 148.85

Intrinsic Value

Enterprise Value 174.95
Net Debt -13.92
Equity Value 188.88
Shares Outstanding 11.25
Equity Value Per Share 16.79