Discounted Cash Flow (DCF) Analysis Levered

Verint Systems Inc. (VRNT)

$38.51

-1.44 (-3.60%)
All numbers are in Millions, Currency in USD
Stock DCF: 27.21 | 38.51 | 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 1,135.231,229.751,303.631,273.70874.51832.31792.14753.92717.53682.91
Revenue (%)
Operating Cash Flow 176.33215.25237.90253.85125.60142.45135.58129.04122.81116.88
Operating Cash Flow (%)
Capital Expenditure -38.66-39.01-52.25-40.32-24.52-27.56-26.23-24.96-23.76-22.61
Capital Expenditure (%)
Free Cash Flow 137.67176.25185.65213.52101.08114.90109.35104.0799.0594.27

Weighted Average Cost Of Capital

Share price $ 38.51
Beta 0.912
Diluted Shares Outstanding 65.17
Cost of Debt
Tax Rate 63.52
After-tax Cost of Debt 0.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.897
Total Debt 463.79
Total Equity 2,509.81
Total Capital 2,973.61
Debt Weighting 15.60
Equity Weighting 84.40
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 1,135.231,229.751,303.631,273.70874.51832.31792.14753.92717.53682.91
Operating Cash Flow 176.33215.25237.90253.85125.60142.45135.58129.04122.81116.88
Capital Expenditure -38.66-39.01-52.25-40.32-24.52-27.56-26.23-24.96-23.76-22.61
Free Cash Flow 137.67176.25185.65213.52101.08114.90109.35104.0799.0594.27
WACC
PV LFCF 107.5995.8985.4676.1667.88
SUM PV LFCF 432.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.79
Free cash flow (t + 1) 96.16
Terminal Value 2,007.45
Present Value of Terminal Value 1,445.42

Intrinsic Value

Enterprise Value 1,878.39
Net Debt 104.99
Equity Value 1,773.40
Shares Outstanding 65.17
Equity Value Per Share 27.21