Discounted Cash Flow (DCF) Analysis Levered

Nuance Communications, Inc. (NUAN)

$55.99

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 5.68 | 55.99 | overvalue

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 1,939.362,051.661,823.091,478.901,362.381,253.021,152.441,059.93974.85896.59
Revenue (%)
Operating Cash Flow 378.87444.43401.36254.56247.64247.10227.27209.02192.24176.81
Operating Cash Flow (%)
Capital Expenditure -61.84-48.85-44.19-61.30-56.51-40.81-37.54-34.52-31.75-29.20
Capital Expenditure (%)
Free Cash Flow 317.03395.58357.17193.27191.13206.29189.73174.50160.49147.61

Weighted Average Cost Of Capital

Share price $ 55.99
Beta 1.087
Diluted Shares Outstanding 294.59
Cost of Debt
Tax Rate -123.39
After-tax Cost of Debt 7.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.874
Total Debt 977.74
Total Equity 16,494.04
Total Capital 17,471.77
Debt Weighting 5.60
Equity Weighting 94.40
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 1,939.362,051.661,823.091,478.901,362.381,253.021,152.441,059.93974.85896.59
Operating Cash Flow 378.87444.43401.36254.56247.64247.10227.27209.02192.24176.81
Capital Expenditure -61.84-48.85-44.19-61.30-56.51-40.81-37.54-34.52-31.75-29.20
Free Cash Flow 317.03395.58357.17193.27191.13206.29189.73174.50160.49147.61
WACC
PV LFCF 191.22163.02138.99118.49101.02
SUM PV LFCF 712.75

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.88
Free cash flow (t + 1) 150.56
Terminal Value 2,560.58
Present Value of Terminal Value 1,752.40

Intrinsic Value

Enterprise Value 2,465.14
Net Debt 790.43
Equity Value 1,674.72
Shares Outstanding 294.59
Equity Value Per Share 5.68