Discounted Cash Flow (DCF) Analysis Unlevered

Conduent Incorporated (CNDT)

$3.49

-0.13 (-3.59%)
All numbers are in Millions, Currency in USD
Stock DCF: 68.03 | 3.49 | undervalue

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 6,0225,3934,4674,1634,1403,778.033,447.703,146.262,871.172,620.13
Revenue (%)
EBITDA 622177-1,569380382-23.86-21.78-19.87-18.14-16.55
EBITDA (%)
EBIT 125-283-2,028-7930-375.87-343.01-313.02-285.65-260.67
EBIT (%)
Depreciation 497460459459352352.01321.23293.14267.51244.12
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 658756496450415429.80392.22357.93326.64298.08
Total Cash (%)
Account Receivables 1,1151,021917943853764.91698.03637581.31530.48
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 138230198182198152.20138.90126.75115.67105.56
Accounts Payable (%)
Capital Expenditure -132-224-215-139-147-136.37-124.45-113.57-103.64-94.58
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 3.49
Beta 1.663
Diluted Shares Outstanding 193.44
Cost of Debt
Tax Rate -12.00
After-tax Cost of Debt 3.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.629
Total Debt 1,597
Total Equity 675.11
Total Capital 2,272.11
Debt Weighting 70.29
Equity Weighting 29.71
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 6,0225,3934,4674,1634,1403,778.033,447.703,146.262,871.172,620.13
EBITDA 622177-1,569380382-23.86-21.78-19.87-18.14-16.55
EBIT 125-283-2,028-7930-375.87-343.01-313.02-285.65-260.67
Tax Rate 1,231.25%-5.32%8.17%15.11%-12.00%247.44%247.44%247.44%247.44%247.44%
EBIAT -1,414.06-298.05-1,862.37-67.0633.60554.19505.74461.52421.17384.34
Depreciation 497460459459352352.01321.23293.14267.51244.12
Accounts Receivable -94104-269088.0966.8861.0355.7050.83
Inventories ----------
Accounts Payable -92-32-1616-45.80-13.31-12.14-11.08-10.11
Capital Expenditure -132-224-215-139-147-136.37-124.45-113.57-103.64-94.58
UFCF -1,049.06123.95-1,546.37210.94344.60812.12756.09689.98629.65574.60
WACC
PV UFCF 767.09674.57581.46501.20432.02
SUM PV UFCF 2,956.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.87
Free cash flow (t + 1) 586.09
Terminal Value 15,144.50
Present Value of Terminal Value 11,386.51

Intrinsic Value

Enterprise Value 14,342.84
Net Debt 1,182
Equity Value 13,160.84
Shares Outstanding 193.44
Equity Value Per Share 68.03