Discounted Cash Flow (DCF) Analysis Unlevered

Hercules Capital, Inc. (HTGC)

$18.47

-0.13 (-0.70%)
All numbers are in Millions, Currency in USD
Stock DCF: 120.25 | 18.47 | undervalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 243.60297.77255.13184.64426.49545.14696.80890.641,138.401,455.10
Revenue (%)
EBITDA 173.86227.68174.47273.13268.69465.71595.26760.86972.521,243.07
EBITDA (%)
EBIT 173.60227.26174.16272.93268.50465.13594.53759.92971.321,241.53
EBIT (%)
Depreciation 0.260.410.320.200.190.570.730.941.201.53
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 64.39198.28133.112,903.2998.901,897.982,425.983,100.863,963.495,066.09
Total Cash (%)
Account Receivables 20.2119.0817.3731.6832.7450.5364.5882.55105.52134.87
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 30.3136.3447.7847.5454.1689.21114.02145.74186.28238.11
Accounts Payable (%)
Capital Expenditure -0.60-0.14-0.11-0.11-0.89-0.66-0.84-1.07-1.37-1.75
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 18.47
Beta 1.324
Diluted Shares Outstanding 144.83
Cost of Debt
Tax Rate 0.00
After-tax Cost of Debt 4.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.500
Total Debt 1,560.06
Total Equity 2,674.94
Total Capital 4,235
Debt Weighting 36.84
Equity Weighting 63.16
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 243.60297.77255.13184.64426.49545.14696.80890.641,138.401,455.10
EBITDA 173.86227.68174.47273.13268.69465.71595.26760.86972.521,243.07
EBIT 173.60227.26174.16272.93268.50465.13594.53759.92971.321,241.53
Tax Rate 0.00%0.00%0.00%-53.63%0.00%-10.73%-10.73%-10.73%-10.73%-10.73%
EBIAT 173.60227.26174.16419.31268.50515.02658.30841.431,075.511,374.71
Depreciation 0.260.410.320.200.190.570.730.941.201.53
Accounts Receivable -1.131.71-14.32-1.06-17.79-14.06-17.97-22.96-29.35
Inventories ----------
Accounts Payable -6.0411.44-0.246.6235.0524.8231.7240.5451.82
Capital Expenditure -0.59-0.14-0.11-0.11-0.89-0.66-0.84-1.07-1.37-1.75
UFCF 173.26234.71187.52404.84273.36532.21668.95855.051,092.921,396.96
WACC
PV UFCF 491.74571.09674.45796.52940.69
SUM PV UFCF 3,474.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.23
Free cash flow (t + 1) 1,424.90
Terminal Value 22,871.54
Present Value of Terminal Value 15,401.29

Intrinsic Value

Enterprise Value 18,875.77
Net Debt 1,461.16
Equity Value 17,414.60
Shares Outstanding 144.83
Equity Value Per Share 120.25