Discounted Cash Flow (DCF) Analysis Levered
Open Text Corporation (OTEX)
$41.62
+0.17 (+0.41%)
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 | 2,815.24 | 2,868.75 | 3,109.74 | 3,386.11 | 3,493.84 | 3,689.24 | 3,895.56 | 4,113.42 | 4,343.46 | 4,586.37 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 709.89 | 876.28 | 954.54 | 876.12 | 981.81 | 1,036.17 | 1,094.12 | 1,155.31 | 1,219.92 | 1,288.14 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -105.32 | -63.84 | -72.71 | -63.68 | -93.11 | -94.81 | -100.11 | -105.71 | -111.63 | -117.87 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 604.57 | 812.44 | 881.83 | 812.44 | 888.70 | 941.36 | 994 | 1,049.59 | 1,108.29 | 1,170.27 |
Weighted Average Cost Of Capital
| Share price | $ 41.62 |
|---|---|
| Beta | 1.074 |
| Diluted Shares Outstanding | 271.91 |
| Cost of Debt | |
| Tax Rate | 23.05 |
| After-tax Cost of Debt | 2.61% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.707 |
| Total Debt | 4,474.64 |
| Total Equity | 11,316.85 |
| Total Capital | 15,791.49 |
| Debt Weighting | 28.34 |
| Equity Weighting | 71.66 |
| 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 | 2,815.24 | 2,868.75 | 3,109.74 | 3,386.11 | 3,493.84 | 3,689.24 | 3,895.56 | 4,113.42 | 4,343.46 | 4,586.37 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 709.89 | 876.28 | 954.54 | 876.12 | 981.81 | 1,036.17 | 1,094.12 | 1,155.31 | 1,219.92 | 1,288.14 |
| Capital Expenditure | -105.32 | -63.84 | -72.71 | -63.68 | -93.11 | -94.81 | -100.11 | -105.71 | -111.63 | -117.87 |
| Free Cash Flow | 604.57 | 812.44 | 881.83 | 812.44 | 888.70 | 941.36 | 994 | 1,049.59 | 1,108.29 | 1,170.27 |
| WACC | ||||||||||
| PV LFCF | 879.94 | 868.53 | 857.26 | 846.14 | 835.17 | |||||
| SUM PV LFCF | 4,287.04 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.98 |
| Free cash flow (t + 1) | 1,193.68 |
| Terminal Value | 23,969.48 |
| Present Value of Terminal Value | 17,105.89 |
Intrinsic Value
| Enterprise Value | 21,392.93 |
|---|---|
| Net Debt | 2,780.90 |
| Equity Value | 18,612.03 |
| Shares Outstanding | 271.91 |
| Equity Value Per Share | 68.45 |