Discounted Cash Flow (DCF) Analysis Unlevered

Altair Engineering Inc. (ALTR)

$85.68

+0.60 (+0.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.55 | 85.68 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 458.92469.92532.18572.22612.70659.03708.86762.46820.11882.12
Revenue (%)
EBITDA 31.2837.4437.4211.6756.2243.5346.8350.3754.1858.27
EBITDA (%)
EBIT 9.7613.6311.78-23.8417.107.738.328.949.6210.35
EBIT (%)
Depreciation 21.5223.8125.6435.5039.1235.8038.5141.4244.5647.92
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 223.12241.22413.74316.15467.46407.60438.42471.57507.22545.57
Total Cash (%)
Account Receivables 112.25124.61146.95181.54207.11189.96204.32219.77236.39254.26
Account Receivables (%)
Inventories 2.40-1.391.501.601.721.851.992.142.31
Inventories (%)
Accounts Payable 8.598.596.6510.43910.8611.6812.5713.5214.54
Accounts Payable (%)
Capital Expenditure -10.13-8.23-8.19-9.65-10.19-11.66-12.54-13.49-14.51-15.61
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 85.68
Beta 1.452
Diluted Shares Outstanding 80.60
Cost of Debt
Tax Rate 170.73
After-tax Cost of Debt -2.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.012
Total Debt 338.83
Total Equity 6,905.47
Total Capital 7,244.30
Debt Weighting 4.68
Equity Weighting 95.32
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 458.92469.92532.18572.22612.70659.03708.86762.46820.11882.12
EBITDA 31.2837.4437.4211.6756.2243.5346.8350.3754.1858.27
EBIT 9.7613.6311.78-23.8417.107.738.328.949.6210.35
Tax Rate 322.61%616.73%-2,953.47%-53.93%170.73%-379.47%-379.47%-379.47%-379.47%-379.47%
EBIAT -21.72-70.43359.61-36.69-12.0937.0739.8742.8846.1249.61
Depreciation 21.5223.8125.6435.5039.1235.8038.5141.4244.5647.92
Accounts Receivable --12.37-22.34-34.59-25.5717.15-14.36-15.45-16.62-17.87
Inventories -2.40--0.10-0.11-0.12-0.13-0.14-0.15-0.16
Accounts Payable -0.01-1.953.79-1.441.870.820.880.951.02
Capital Expenditure -10.13-8.23-8.19-9.65-10.19-11.66-12.54-13.49-14.51-15.61
UFCF -10.34-64.81352.78-41.74-10.2880.1152.1656.1160.3564.91
WACC
PV UFCF 72.5942.8341.7440.6839.65
SUM PV UFCF 237.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.36
Free cash flow (t + 1) 66.21
Terminal Value 792.01
Present Value of Terminal Value 483.81

Intrinsic Value

Enterprise Value 721.30
Net Debt -128.63
Equity Value 849.93
Shares Outstanding 80.60
Equity Value Per Share 10.55