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
Stock DCF: 67.24 | 33.15 | 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 325.37342.84385.85503.78467.18515.31568.40626.97691.57762.82
Revenue (%)
EBITDA 93.25108.81118.42180.67163.25166.85184.04203223.92246.99
EBITDA (%)
EBIT 61.4178.2584.32123.20108.45114.63126.44139.46153.83169.68
EBIT (%)
Depreciation 31.8430.5634.1057.4654.7952.2257.6163.5470.0977.31
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 130.35193.94150.27251.79198.83235.10259.32286.04315.51348.02
Total Cash (%)
Account Receivables 71.8962.0884.9890.7991.50102.89113.50125.19138.09152.32
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 54.6644.2762.8180.3471.5179.6187.8196.86106.84117.85
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 325.37342.84385.85503.78467.18515.31568.40626.97691.57762.82
EBITDA 93.25108.81118.42180.67163.25166.85184.04203223.92246.99
EBIT 61.4178.2584.32123.20108.45114.63126.44139.46153.83169.68
Tax Rate 16.95%26.00%15.90%19.05%13.61%18.30%18.30%18.30%18.30%18.30%
EBIAT 5157.9070.9199.7393.6993.64103.29113.94125.67138.62
Depreciation 31.8430.5634.1057.4654.7952.2257.6163.5470.0977.31
Accounts Receivable -9.81-22.90-5.81-0.71-11.39-10.60-11.69-12.90-14.23
Inventories ----------
Accounts Payable --10.3918.5417.53-8.838.108.209.059.9811.01
Capital Expenditure -3.16-2.24-2.15-2.54-3.33-3.51-3.87-4.27-4.71-5.19
UFCF 79.6785.6498.50166.38135.60139.07154.63170.56188.14207.52
WACC
PV UFCF 129.67134.43138.26142.19146.24
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