Discounted Cash Flow (DCF) Analysis Levered

TechTarget, Inc. (TTGT)

$69.62

+0.30 (+0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 176.12 | 69.62 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 121.33133.96148.38263.43350.10465.30618.39821.861,092.271,451.66
Revenue (%)
Operating Cash Flow 23.8839.4552.4581.70101.09134.35178.55237.30315.38419.14
Operating Cash Flow (%)
Capital Expenditure -5.54-6.34-6.66-12.63-16.26-21.61-28.72-38.17-50.73-67.42
Capital Expenditure (%)
Free Cash Flow 18.3433.1145.7969.0784.83112.74149.83199.13264.65351.72

Weighted Average Cost Of Capital

Share price $ 69.62
Beta 1.058
Diluted Shares Outstanding 28.68
Cost of Debt
Tax Rate 91.43
After-tax Cost of Debt 0.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.833
Total Debt 0.48
Total Equity 1,996.35
Total Capital 1,996.83
Debt Weighting 0.02
Equity Weighting 99.98
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 121.33133.96148.38263.43350.10465.30618.39821.861,092.271,451.66
Operating Cash Flow 23.8839.4552.4581.70101.09134.35178.55237.30315.38419.14
Capital Expenditure -5.54-6.34-6.66-12.63-16.26-21.61-28.72-38.17-50.73-67.42
Free Cash Flow 18.3433.1145.7969.0784.83112.74149.83199.13264.65351.72
WACC
PV LFCF 84.83104.55128.86158.82195.75241.27
SUM PV LFCF 829.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.83
Free cash flow (t + 1) 358.76
Terminal Value 6,153.67
Present Value of Terminal Value 4,221.20

Intrinsic Value

Enterprise Value 5,050.46
Net Debt 0.11
Equity Value 5,050.36
Shares Outstanding 28.68
Equity Value Per Share 176.12