Discounted Cash Flow (DCF) Analysis Levered
NetSol Technologies, Inc. (NTWK)
$3.16
-0.04 (-1.25%)
All numbers are in Millions, Currency in USD
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 |