Discounted Cash Flow (DCF) Analysis Levered

NextGen Healthcare, Inc. (NXGN)

$18.78

-0.24 (-1.26%)

All numbers are in Millions, Currency in USD

Stock DCF: 13.06 | 18.78 | overvalue

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	531.02	529.17	540.24	556.82	596.35	614.11	632.40	651.23	670.62	690.59
Revenue (%)
Operating Cash Flow	76.59	50.48	85.60	98.52	53.55	81.65	84.08	86.58	89.16	91.82
Operating Cash Flow (%)
Capital Expenditure	-28.67	-25.52	-26.88	-28.34	-28.08	-30.70	-31.61	-32.56	-33.53	-34.52
Capital Expenditure (%)
Free Cash Flow	47.92	24.95	58.72	70.18	25.46	50.95	52.47	54.03	55.64	57.29

Weighted Average Cost Of Capital

Share price	$ 18.78
Beta	1.045
Diluted Shares Outstanding	67.79
Cost of Debt
Tax Rate	68.86
After-tax Cost of Debt	2.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.328
Total Debt	20.02
Total Equity	1,273.06
Total Capital	1,293.08
Debt Weighting	1.55
Equity Weighting	98.45
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	531.02	529.17	540.24	556.82	596.35	614.11	632.40	651.23	670.62	690.59
Operating Cash Flow	76.59	50.48	85.60	98.52	53.55	81.65	84.08	86.58	89.16	91.82
Capital Expenditure	-28.67	-25.52	-26.88	-28.34	-28.08	-30.70	-31.61	-32.56	-33.53	-34.52
Free Cash Flow	47.92	24.95	58.72	70.18	25.46	50.95	52.47	54.03	55.64	57.29
WACC
PV LFCF						43.50	41.38	39.38	37.47	35.65
SUM PV LFCF										213.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.23
Free cash flow (t + 1)	58.44
Terminal Value	938.05
Present Value of Terminal Value	631.67

Intrinsic Value

Enterprise Value	845.28
Net Debt	-39.81
Equity Value	885.08
Shares Outstanding	67.79
Equity Value Per Share	13.06