Discounted Cash Flow (DCF) Analysis Unlevered

American Software, Inc. (AMSWA)

$14.89

-0.29 (-1.91%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.66 | 14.89 | 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 112.70108.71115.47111.41127.55131.91136.41141.06145.87150.85
Revenue (%)
EBITDA 23.3217.4516.4314.8718.3720.7721.4722.2122.9623.75
EBITDA (%)
EBIT 17.299.738.329.2614.2313.4513.9014.3814.8715.38
EBIT (%)
Depreciation 6.037.728.105.614.147.327.577.838.108.37
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 78.928693.97104.66127.52111.97115.79119.74123.83128.05
Total Cash (%)
Account Receivables 22.0220.2925.0126.6423.6126.9827.9028.8629.8430.86
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1.972.451.641.732.512.362.442.522.612.70
Accounts Payable (%)
Capital Expenditure -6.23-7.21-3.59-1.30-0.93-4.53-4.68-4.84-5.01-5.18
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 14.89
Beta 0.878
Diluted Shares Outstanding 34.30
Cost of Debt
Tax Rate 7.62
After-tax Cost of Debt 36.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.649
Total Debt 1
Total Equity 510.80
Total Capital 511.80
Debt Weighting 0.20
Equity Weighting 99.80
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 112.70108.71115.47111.41127.55131.91136.41141.06145.87150.85
EBITDA 23.3217.4516.4314.8718.3720.7721.4722.2122.9623.75
EBIT 17.299.738.329.2614.2313.4513.9014.3814.8715.38
Tax Rate 23.30%10.97%0.82%8.58%7.62%10.26%10.26%10.26%10.26%10.26%
EBIAT 13.268.678.258.4613.1412.0712.4812.9013.3413.80
Depreciation 6.037.728.105.614.147.327.577.838.108.37
Accounts Receivable -1.72-4.71-1.633.03-3.38-0.92-0.95-0.98-1.02
Inventories ----------
Accounts Payable -0.47-0.810.090.77-0.150.080.080.090.09
Capital Expenditure -6.23-7.21-3.59-1.30-0.93-4.53-4.68-4.84-5.01-5.18
UFCF 13.0611.377.2511.2320.1511.3414.5215.0215.5316.06
WACC
PV UFCF 10.5212.5212.0211.5411.08
SUM PV UFCF 57.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.70
Free cash flow (t + 1) 16.38
Terminal Value 287.41
Present Value of Terminal Value 198.34

Intrinsic Value

Enterprise Value 256.04
Net Debt -109.69
Equity Value 365.73
Shares Outstanding 34.30
Equity Value Per Share 10.66