Discounted Cash Flow (DCF) Analysis Unlevered

Digi International Inc. (DGII)

$39.13

-1.03 (-2.56%)
All numbers are in Millions, Currency in USD
Stock DCF: 10.42 | 39.13 | 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 228.37254.20279.27308.63388.22444.01507.81580.78664.24759.68
Revenue (%)
EBITDA 15.0824.6430.3531.2746.4843.7650.0457.2465.4674.87
EBITDA (%)
EBIT 2.8111.2511.0610.3939.8420.6423.612730.8835.32
EBIT (%)
Depreciation 12.2713.4019.3020.886.6423.1126.4430.2334.5839.55
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 62.7592.7954.13152.4334.90125.87143.96164.64188.30215.36
Total Cash (%)
Account Receivables 50.8256.4259.2343.7454.2183.2995.26108.94124.60142.50
Account Receivables (%)
Inventories 41.6439.7651.5743.9273.2275.8786.7799.24113.50129.81
Inventories (%)
Accounts Payable 12.9121.1828.0722.5932.3735.2540.3146.1152.7360.31
Accounts Payable (%)
Capital Expenditure -1.84-9.34-0.90-2.26-1.97-5.36-6.13-7.02-8.02-9.18
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 39.13
Beta 1.253
Diluted Shares Outstanding 35.99
Cost of Debt
Tax Rate -4.05
After-tax Cost of Debt 126.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.321
Total Debt 15.52
Total Equity 1,408.48
Total Capital 1,424.01
Debt Weighting 1.09
Equity Weighting 98.91
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 228.37254.20279.27308.63388.22444.01507.81580.78664.24759.68
EBITDA 15.0824.6430.3531.2746.4843.7650.0457.2465.4674.87
EBIT 2.8111.2511.0610.3939.8420.6423.612730.8835.32
Tax Rate 53.30%10.65%-12.70%-15.19%-4.05%6.40%6.40%6.40%6.40%6.40%
EBIAT 1.3110.0512.4611.9741.4519.3222.1025.2728.9033.06
Depreciation 12.2713.4019.3020.886.6423.1126.4430.2334.5839.55
Accounts Receivable --5.60-2.8115.49-10.48-29.07-11.97-13.69-15.65-17.90
Inventories -1.88-11.807.65-29.30-2.65-10.90-12.47-14.26-16.31
Accounts Payable -8.276.88-5.489.792.885.075.796.637.58
Capital Expenditure -1.84-9.34-0.90-2.26-1.97-5.36-6.13-7.02-8.02-9.18
UFCF 11.7418.6623.1348.2516.138.2324.5928.1332.1736.79
WACC
PV UFCF 7.4420.1120.7921.5022.23
SUM PV UFCF 92.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.60
Free cash flow (t + 1) 37.53
Terminal Value 436.37
Present Value of Terminal Value 263.68

Intrinsic Value

Enterprise Value 355.74
Net Debt -19.38
Equity Value 375.12
Shares Outstanding 35.99
Equity Value Per Share 10.42