Discounted Cash Flow (DCF) Analysis Unlevered

American Software, Inc. (AMSWA)

$14.74

-0.31 (-2.06%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.65 | 14.74 | 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 24.6217.4516.4314.4618.3720.9721.6922.4323.1923.99
EBITDA (%)
EBIT 18.599.738.328.8514.2313.6514.1214.6015.1015.61
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 $ 14.74
Beta 0.852
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 7.719
Total Debt 1
Total Equity 505.66
Total Capital 506.66
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 24.6217.4516.4314.4618.3720.9721.6922.4323.1923.99
EBIT 18.599.738.328.8514.2313.6514.1214.6015.1015.61
Tax Rate 23.30%10.97%0.82%8.58%7.62%10.26%10.26%10.26%10.26%10.26%
EBIAT 14.268.678.258.0913.1412.2512.6713.1013.5514.01
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 14.0611.377.2510.8620.1511.5214.7215.2215.7416.27
WACC
PV UFCF 10.6912.6712.1511.6611.19
SUM PV UFCF 58.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.78
Free cash flow (t + 1) 16.60
Terminal Value 287.19
Present Value of Terminal Value 197.46

Intrinsic Value

Enterprise Value 255.82
Net Debt -109.69
Equity Value 365.51
Shares Outstanding 34.30
Equity Value Per Share 10.65