Discounted Cash Flow (DCF) Analysis Levered

Vonage Holdings Corp. (VG)

$20.99

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 12.50 | 20.99 | 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 1,002.291,048.781,189.351,247.931,409.021,535.391,673.091,823.151,986.672,164.85
Revenue (%)
Operating Cash Flow 128.06123.2192.9383.88158.71154.53168.39183.49199.95217.88
Operating Cash Flow (%)
Capital Expenditure -33.29-26.75-49.08-41.59-46.96-51.17-55.76-60.76-66.21-72.15
Capital Expenditure (%)
Free Cash Flow 94.7796.4643.8542.29111.75103.36112.63122.73133.74145.73

Weighted Average Cost Of Capital

Share price $ 20.99
Beta 0.596
Diluted Shares Outstanding 246.08
Cost of Debt
Tax Rate -22.11
After-tax Cost of Debt 5.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.708
Total Debt 479.17
Total Equity 5,165.26
Total Capital 5,644.43
Debt Weighting 8.49
Equity Weighting 91.51
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 1,002.291,048.781,189.351,247.931,409.021,535.391,673.091,823.151,986.672,164.85
Operating Cash Flow 128.06123.2192.9383.88158.71154.53168.39183.49199.95217.88
Capital Expenditure -33.29-26.75-49.08-41.59-46.96-51.17-55.76-60.76-66.21-72.15
Free Cash Flow 94.7796.4643.8542.29111.75103.36112.63122.73133.74145.73
WACC
PV LFCF 78.2380.6283.0985.6488.26
SUM PV LFCF 519.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.73
Free cash flow (t + 1) 148.65
Terminal Value 3,985.24
Present Value of Terminal Value 3,016.22

Intrinsic Value

Enterprise Value 3,535.89
Net Debt 460.82
Equity Value 3,075.07
Shares Outstanding 246.08
Equity Value Per Share 12.50