Discounted Cash Flow (DCF) Analysis Levered

QuinStreet, Inc. (QNST)

$9.16

-0.52 (-5.37%)

All numbers are in Millions, Currency in USD

Stock DCF: 17.22 | 9.16 | undervalue

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	404.36	455.15	490.34	578.49	582.10	638.70	700.80	768.95	843.71	925.75
Revenue (%)
Operating Cash Flow	26.98	37.97	47.61	50.61	28.67	49.05	53.82	59.05	64.79	71.09
Operating Cash Flow (%)
Capital Expenditure	-2.76	-4.31	-4.25	-5.10	-2.84	-4.94	-5.42	-5.94	-6.52	-7.16
Capital Expenditure (%)
Free Cash Flow	24.22	33.66	43.35	45.51	25.83	44.11	48.40	53.11	58.27	63.94

Weighted Average Cost Of Capital

Share price	$ 9.16
Beta	1.037
Diluted Shares Outstanding	54.34
Cost of Debt
Tax Rate	8.92
After-tax Cost of Debt	25.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.610
Total Debt	3.86
Total Equity	497.75
Total Capital	501.60
Debt Weighting	0.77
Equity Weighting	99.23
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	404.36	455.15	490.34	578.49	582.10	638.70	700.80	768.95	843.71	925.75
Operating Cash Flow	26.98	37.97	47.61	50.61	28.67	49.05	53.82	59.05	64.79	71.09
Capital Expenditure	-2.76	-4.31	-4.25	-5.10	-2.84	-4.94	-5.42	-5.94	-6.52	-7.16
Free Cash Flow	24.22	33.66	43.35	45.51	25.83	44.11	48.40	53.11	58.27	63.94
WACC
PV LFCF						40.57	40.93	41.30	41.68	42.05
SUM PV LFCF										206.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.74
Free cash flow (t + 1)	65.22
Terminal Value	967.59
Present Value of Terminal Value	636.42

Intrinsic Value

Enterprise Value	842.95
Net Debt	-92.58
Equity Value	935.53
Shares Outstanding	54.34
Equity Value Per Share	17.22