Discounted Cash Flow (DCF) Analysis Unlevered

Bandwidth Inc. (BAND)

$12.53

-0.75 (-5.65%)
All numbers are in Millions, Currency in USD
Stock DCF: -112.58 | 12.53 | 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 204.11232.59343.11490.91573.15746.96973.471,268.661,653.382,154.76
Revenue (%)
EBITDA 12.58-3.898.1140.1311.2825.3933.0943.1256.2073.24
EBITDA (%)
EBIT 6.75-17.69-13.50-2.24-24.32-19.32-25.18-32.82-42.77-55.74
EBIT (%)
Depreciation 5.8213.8121.6242.3635.6044.7158.2775.9498.97128.98
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 58.66185112.16331.45184.87359.65468.71610.84796.081,037.48
Total Cash (%)
Account Receivables 24.0130.1955.2461.5774.4799.16129.23168.42219.49286.05
Account Receivables (%)
Inventories ---40-57.23-66.82-87.08-113.49-147.90-192.75-251.20
Inventories (%)
Accounts Payable 3.424.1911.679.1426.7520.0326.1034.0144.3357.77
Accounts Payable (%)
Capital Expenditure -14.45-25.76-14.59-54.63-64.09-66.80-87.06-113.46-147.86-192.70
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 12.53
Beta 1.417
Diluted Shares Outstanding 30.91
Cost of Debt
Tax Rate -13.08
After-tax Cost of Debt 4.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.019
Total Debt 492.64
Total Equity 387.28
Total Capital 879.91
Debt Weighting 55.99
Equity Weighting 44.01
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 204.11232.59343.11490.91573.15746.96973.471,268.661,653.382,154.76
EBITDA 12.58-3.898.1140.1311.2825.3933.0943.1256.2073.24
EBIT 6.75-17.69-13.50-2.24-24.32-19.32-25.18-32.82-42.77-55.74
Tax Rate -154.12%116.38%-51.79%12.29%-13.08%-18.06%-18.06%-18.06%-18.06%-18.06%
EBIAT 17.162.90-20.50-1.96-27.51-22.81-29.73-38.75-50.50-65.81
Depreciation 5.8213.8121.6242.3635.6044.7158.2775.9498.97128.98
Accounts Receivable --6.18-25.06-6.33-12.89-24.70-30.07-39.19-51.07-66.56
Inventories ---17.239.5920.2626.4134.4144.8558.45
Accounts Payable -0.777.48-2.5217.61-6.726.077.9110.3113.44
Capital Expenditure -14.45-25.76-14.59-54.63-64.09-66.80-87.06-113.46-147.86-192.70
UFCF 8.54-14.46-31.06-5.85-41.69-56.06-56.11-73.12-95.30-124.20
WACC
PV UFCF -52.26-48.76-59.24-71.97-87.44
SUM PV UFCF -319.68

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.27
Free cash flow (t + 1) -129.16
Terminal Value -3,949.98
Present Value of Terminal Value -2,781.01

Intrinsic Value

Enterprise Value -3,100.69
Net Debt 379
Equity Value -3,479.69
Shares Outstanding 30.91
Equity Value Per Share -112.58