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	121.33	133.96	148.38	263.43	350.10	465.30	618.39	821.86	1,092.27	1,451.66
Revenue (%)
Operating Cash Flow	23.88	39.45	52.45	81.70	101.09	134.35	178.55	237.30	315.38	419.14
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	18.34	33.11	45.79	69.07	84.83	112.74	149.83	199.13	264.65	351.72

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	121.33	133.96	148.38	263.43	350.10	465.30	618.39	821.86	1,092.27	1,451.66
Operating Cash Flow	23.88	39.45	52.45	81.70	101.09	134.35	178.55	237.30	315.38	419.14
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	18.34	33.11	45.79	69.07	84.83	112.74	149.83	199.13	264.65	351.72
WACC
PV LFCF					84.83	104.55	128.86	158.82	195.75	241.27
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