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: 4.59 | 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	1,939.36	2,051.66	1,823.09	1,478.90	1,362.38	1,253.02	1,152.44	1,059.93	974.85	896.59
Revenue (%)
Operating Cash Flow	378.87	444.43	401.36	254.56	247.64	247.10	227.27	209.02	192.24	176.81
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	317.03	395.58	357.17	193.27	191.13	206.29	189.73	174.50	160.49	147.61

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	8.876
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	1,939.36	2,051.66	1,823.09	1,478.90	1,362.38	1,253.02	1,152.44	1,059.93	974.85	896.59
Operating Cash Flow	378.87	444.43	401.36	254.56	247.64	247.10	227.27	209.02	192.24	176.81
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	317.03	395.58	357.17	193.27	191.13	206.29	189.73	174.50	160.49	147.61
WACC
PV LFCF						174.20	147.23	124.44	105.17	88.89
SUM PV LFCF										696.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.82
Free cash flow (t + 1)	150.56
Terminal Value	2,207.65
Present Value of Terminal Value	1,446.73

Intrinsic Value

Enterprise Value	2,143.12
Net Debt	790.43
Equity Value	1,352.69
Shares Outstanding	294.59
Equity Value Per Share	4.59