Discounted Cash Flow (DCF) Analysis Unlevered

Absolute Software Corporation (ABST)

$9.97

-0.02 (-0.20%)
All numbers are in Millions, Currency in USD
Stock DCF: 8.66 | 9.97 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 93.6298.91104.67120.78197.31241.82296.36363.21445.14545.55
Revenue (%)
EBITDA 15.4014.7621.1810.6417.6833.5641.1350.4061.7775.71
EBITDA (%)
EBIT 3.0111.3515.864.94-7.4714.5817.8721.8926.8332.89
EBIT (%)
Depreciation 12.403.425.325.7125.1518.9823.2628.5134.9442.82
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 34.3335.8047.08140.5364.03128.95158.04193.69237.38290.92
Total Cash (%)
Account Receivables 17.6529.4936.6032.7463.2769.0784.65103.74127.14155.82
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 5.116.544.1714.051.8513.8516.9720.8025.4931.24
Accounts Payable (%)
Capital Expenditure -2.91-3.08-3.86-2.83-1.83-6.37-7.81-9.57-11.73-14.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 9.97
Beta 0.649
Diluted Shares Outstanding 50.38
Cost of Debt
Tax Rate 13.09
After-tax Cost of Debt 6.49%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.569
Total Debt 277.14
Total Equity 502.30
Total Capital 779.44
Debt Weighting 35.56
Equity Weighting 64.44
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 93.6298.91104.67120.78197.31241.82296.36363.21445.14545.55
EBITDA 15.4014.7621.1810.6417.6833.5641.1350.4061.7775.71
EBIT 3.0111.3515.864.94-7.4714.5817.8721.8926.8332.89
Tax Rate -8.78%31.78%30.23%14.34%13.09%16.13%16.13%16.13%16.13%16.13%
EBIAT 3.277.7411.074.23-6.4912.2314.9818.3622.5027.58
Depreciation 12.403.425.325.7125.1518.9823.2628.5134.9442.82
Accounts Receivable --11.85-7.113.87-30.53-5.80-15.58-19.09-23.40-28.68
Inventories ----------
Accounts Payable -1.43-2.379.88-12.2011.993.123.834.695.75
Capital Expenditure -2.91-3.08-3.86-2.83-1.83-6.37-7.81-9.57-11.73-14.38
UFCF 12.76-2.333.0520.85-25.9031.0317.9822.032733.10
WACC
PV UFCF 29.1215.8418.2220.9624.11
SUM PV UFCF 108.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.54
Free cash flow (t + 1) 33.76
Terminal Value 743.55
Present Value of Terminal Value 541.69

Intrinsic Value

Enterprise Value 649.94
Net Debt 213.47
Equity Value 436.47
Shares Outstanding 50.38
Equity Value Per Share 8.66