Discounted Cash Flow (DCF) Analysis Levered

OSI Systems, Inc. (OSIS)

$121.49

+1.15 (+0.96%)

All numbers are in Millions, Currency in USD

Stock DCF: 80.46 | 121.49 | 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	1,089.29	1,182.11	1,166.04	1,146.90	1,183.24	1,208.94	1,235.20	1,262.03	1,289.44	1,317.45
Revenue (%)
Operating Cash Flow	133.11	119.11	129.18	139.07	63.81	123.05	125.72	128.46	131.25	134.10
Operating Cash Flow (%)
Capital Expenditure	-45.65	-30.22	-33.75	-29.51	-14.92	-32.58	-33.29	-34.01	-34.75	-35.51
Capital Expenditure (%)
Free Cash Flow	87.46	88.90	95.43	109.55	48.89	90.47	92.44	94.44	96.50	98.59

Weighted Average Cost Of Capital

Share price	$ 121.49
Beta	0.939
Diluted Shares Outstanding	17.87
Cost of Debt
Tax Rate	17.70
After-tax Cost of Debt	2.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.124
Total Debt	293.24
Total Equity	2,171.03
Total Capital	2,464.27
Debt Weighting	11.90
Equity Weighting	88.10
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	1,089.29	1,182.11	1,166.04	1,146.90	1,183.24	1,208.94	1,235.20	1,262.03	1,289.44	1,317.45
Operating Cash Flow	133.11	119.11	129.18	139.07	63.81	123.05	125.72	128.46	131.25	134.10
Capital Expenditure	-45.65	-30.22	-33.75	-29.51	-14.92	-32.58	-33.29	-34.01	-34.75	-35.51
Free Cash Flow	87.46	88.90	95.43	109.55	48.89	90.47	92.44	94.44	96.50	98.59
WACC
PV LFCF						84.19	80.05	76.11	72.36	68.80
SUM PV LFCF										381.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.46
Free cash flow (t + 1)	100.56
Terminal Value	1,841.81
Present Value of Terminal Value	1,285.32

Intrinsic Value

Enterprise Value	1,666.83
Net Debt	229.04
Equity Value	1,437.79
Shares Outstanding	17.87
Equity Value Per Share	80.46