Discounted Cash Flow (DCF) Analysis Unlevered
Enghouse Systems Limited (ENGH.TO)
$33.15
+0.10 (+0.30%)
All numbers are in Millions, Currency in USD
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 | 325.37 | 342.84 | 385.85 | 503.78 | 467.18 | 515.31 | 568.40 | 626.97 | 691.57 | 762.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 93.25 | 108.81 | 118.42 | 180.67 | 163.25 | 166.85 | 184.04 | 203 | 223.92 | 246.99 |
| EBITDA (%) | ||||||||||
| EBIT | 61.41 | 78.25 | 84.32 | 123.20 | 108.45 | 114.63 | 126.44 | 139.46 | 153.83 | 169.68 |
| EBIT (%) | ||||||||||
| Depreciation | 31.84 | 30.56 | 34.10 | 57.46 | 54.79 | 52.22 | 57.61 | 63.54 | 70.09 | 77.31 |
| 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 | 130.35 | 193.94 | 150.27 | 251.79 | 198.83 | 235.10 | 259.32 | 286.04 | 315.51 | 348.02 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 71.89 | 62.08 | 84.98 | 90.79 | 91.50 | 102.89 | 113.50 | 125.19 | 138.09 | 152.32 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 54.66 | 44.27 | 62.81 | 80.34 | 71.51 | 79.61 | 87.81 | 96.86 | 106.84 | 117.85 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -3.16 | -2.24 | -2.16 | -2.54 | -3.33 | -3.51 | -3.87 | -4.27 | -4.71 | -5.19 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 33.15 |
|---|---|
| Beta | 0.936 |
| Diluted Shares Outstanding | 55.06 |
| Cost of Debt | |
| Tax Rate | 13.61 |
| After-tax Cost of Debt | 3.50% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.305 |
| Total Debt | 25.60 |
| Total Equity | 1,825.31 |
| Total Capital | 1,850.91 |
| Debt Weighting | 1.38 |
| Equity Weighting | 98.62 |
| 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 | 325.37 | 342.84 | 385.85 | 503.78 | 467.18 | 515.31 | 568.40 | 626.97 | 691.57 | 762.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 93.25 | 108.81 | 118.42 | 180.67 | 163.25 | 166.85 | 184.04 | 203 | 223.92 | 246.99 |
| EBIT | 61.41 | 78.25 | 84.32 | 123.20 | 108.45 | 114.63 | 126.44 | 139.46 | 153.83 | 169.68 |
| Tax Rate | 16.95% | 26.00% | 15.90% | 19.05% | 13.61% | 18.30% | 18.30% | 18.30% | 18.30% | 18.30% |
| EBIAT | 51 | 57.90 | 70.91 | 99.73 | 93.69 | 93.64 | 103.29 | 113.94 | 125.67 | 138.62 |
| Depreciation | 31.84 | 30.56 | 34.10 | 57.46 | 54.79 | 52.22 | 57.61 | 63.54 | 70.09 | 77.31 |
| Accounts Receivable | - | 9.81 | -22.90 | -5.81 | -0.71 | -11.39 | -10.60 | -11.69 | -12.90 | -14.23 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -10.39 | 18.54 | 17.53 | -8.83 | 8.10 | 8.20 | 9.05 | 9.98 | 11.01 |
| Capital Expenditure | -3.16 | -2.24 | -2.15 | -2.54 | -3.33 | -3.51 | -3.87 | -4.27 | -4.71 | -5.19 |
| UFCF | 79.67 | 85.64 | 98.50 | 166.38 | 135.60 | 139.07 | 154.63 | 170.56 | 188.14 | 207.52 |
| WACC | ||||||||||
| PV UFCF | 129.67 | 134.43 | 138.26 | 142.19 | 146.24 | |||||
| SUM PV UFCF | 690.80 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.25 |
| Free cash flow (t + 1) | 211.67 |
| Terminal Value | 4,031.80 |
| Present Value of Terminal Value | 2,841.27 |
Intrinsic Value
| Enterprise Value | 3,532.07 |
|---|---|
| Net Debt | -170.29 |
| Equity Value | 3,702.36 |
| Shares Outstanding | 55.06 |
| Equity Value Per Share | 67.24 |