Discounted Cash Flow (DCF) Analysis Levered

PDF Solutions, Inc. (PDFS)

$23.5

-0.57 (-2.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.12 | 23.5 | 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 101.8785.7985.5888.05111.06114.67118.39122.23126.20130.30
Revenue (%)
Operating Cash Flow 10.5513.3424.5921.784.2419.0819.7020.342121.68
Operating Cash Flow (%)
Capital Expenditure -10.26-13.12-10.55-6.97-3.67-11.22-11.58-11.96-12.34-12.74
Capital Expenditure (%)
Free Cash Flow 0.290.2214.0414.820.577.868.128.388.658.94

Weighted Average Cost Of Capital

Share price $ 23.5
Beta 1.467
Diluted Shares Outstanding 37.22
Cost of Debt
Tax Rate -17.31
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.620
Total Debt 7.02
Total Equity 874.69
Total Capital 881.71
Debt Weighting 0.80
Equity Weighting 99.20
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 101.8785.7985.5888.05111.06114.67118.39122.23126.20130.30
Operating Cash Flow 10.5513.3424.5921.784.2419.0819.7020.342121.68
Capital Expenditure -10.26-13.12-10.55-6.97-3.67-11.22-11.58-11.96-12.34-12.74
Free Cash Flow 0.290.2214.0414.820.577.868.128.388.658.94
WACC
PV LFCF 7.116.646.205.795.41
SUM PV LFCF 31.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.57
Free cash flow (t + 1) 9.11
Terminal Value 106.35
Present Value of Terminal Value 64.35

Intrinsic Value

Enterprise Value 95.50
Net Debt -20.67
Equity Value 116.16
Shares Outstanding 37.22
Equity Value Per Share 3.12