Discounted Cash Flow (DCF) Analysis Unlevered

Altair Engineering Inc. (ALTR)

$45.94

+1.72 (+3.89%)
All numbers are in Millions, Currency in USD
Stock DCF: 7.31 | 45.94 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 333.33396.38458.92469.92532.18599.15674.55759.44855.01962.61
Revenue (%)
EBITDA -22.5041.9631.2837.4437.4230.7334.6038.9643.8649.38
EBITDA (%)
EBIT -34.2527.229.7613.6311.784.595.175.826.557.38
EBIT (%)
Depreciation 11.7514.7321.5223.8125.6426.1429.4333.1437.3142
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 39.2135.35223.12241.22413.74237.71267.63301.31339.23381.92
Total Cash (%)
Account Receivables 92.69101.23112.25124.61146.95158.10178200.40225.61254.01
Account Receivables (%)
Inventories 1.981.962.502.562.903.263.674.144.665.24
Inventories (%)
Accounts Payable 4.888.368.598.596.6510.2111.5012.9414.5716.40
Accounts Payable (%)
Capital Expenditure -9.64-9.39-10.13-8.23-8.19-12.89-14.51-16.34-18.40-20.71
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 45.94
Beta 1.498
Diluted Shares Outstanding 73.24
Cost of Debt
Tax Rate -2,953.47
After-tax Cost of Debt 5.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.731
Total Debt 229.19
Total Equity 3,364.69
Total Capital 3,593.88
Debt Weighting 6.38
Equity Weighting 93.62
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 333.33396.38458.92469.92532.18599.15674.55759.44855.01962.61
EBITDA -22.5041.9631.2837.4437.4230.7334.6038.9643.8649.38
EBIT -34.2527.229.7613.6311.784.595.175.826.557.38
Tax Rate -173.01%49.25%322.61%616.73%-2,953.47%-427.58%-427.58%-427.58%-427.58%-427.58%
EBIAT -93.5113.82-21.72-70.43359.6124.2327.2830.7134.5838.93
Depreciation 11.7514.7321.5223.8125.6426.1429.4333.1437.3142
Accounts Receivable --8.54-11.01-12.37-22.34-11.15-19.90-22.40-25.22-28.39
Inventories -0.02-0.54-0.06-0.34-0.36-0.41-0.46-0.52-0.59
Accounts Payable -3.480.230.01-1.953.561.281.451.631.83
Capital Expenditure -9.64-9.39-10.13-8.23-8.19-12.89-14.51-16.34-18.40-20.71
UFCF -91.4014.11-21.66-67.27352.4429.5323.1826.0929.3833.07
WACC
PV UFCF 26.7519.0219.4019.7920.18
SUM PV UFCF 105.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.38
Free cash flow (t + 1) 33.73
Terminal Value 402.56
Present Value of Terminal Value 245.68

Intrinsic Value

Enterprise Value 350.84
Net Debt -184.56
Equity Value 535.39
Shares Outstanding 73.24
Equity Value Per Share 7.31