Discounted Cash Flow (DCF) Analysis Levered

Sapiens International Corporation N... (SPNS)

$28.58

-0.72 (-2.46%)

All numbers are in Millions, Currency in USD

Stock DCF: 21.74 | 28.58 | 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	289.71	325.67	382.90	461.03	474.74	538.07	609.86	691.22	783.43	887.95
Revenue (%)
Operating Cash Flow	27.70	66.16	58.25	80.54	43.78	77.25	87.55	99.23	112.47	127.48
Operating Cash Flow (%)
Capital Expenditure	-7.07	-17.14	-11.24	-11.85	-9.05	-16.27	-18.44	-20.90	-23.69	-26.85
Capital Expenditure (%)
Free Cash Flow	20.63	49.02	47.01	68.69	34.73	60.98	69.11	78.33	88.78	100.63

Weighted Average Cost Of Capital

Share price	$ 28.58
Beta	1.210
Diluted Shares Outstanding	55.59
Cost of Debt
Tax Rate	19.76
After-tax Cost of Debt	0.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.150
Total Debt	116.57
Total Equity	1,588.76
Total Capital	1,705.33
Debt Weighting	6.84
Equity Weighting	93.16
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	289.71	325.67	382.90	461.03	474.74	538.07	609.86	691.22	783.43	887.95
Operating Cash Flow	27.70	66.16	58.25	80.54	43.78	77.25	87.55	99.23	112.47	127.48
Capital Expenditure	-7.07	-17.14	-11.24	-11.85	-9.05	-16.27	-18.44	-20.90	-23.69	-26.85
Free Cash Flow	20.63	49.02	47.01	68.69	34.73	60.98	69.11	78.33	88.78	100.63
WACC
PV LFCF						55.68	57.62	59.63	61.71	63.86
SUM PV LFCF										298.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.52
Free cash flow (t + 1)	102.64
Terminal Value	1,364.92
Present Value of Terminal Value	866.25

Intrinsic Value

Enterprise Value	1,164.75
Net Debt	-43.72
Equity Value	1,208.47
Shares Outstanding	55.59
Equity Value Per Share	21.74