Discounted Cash Flow (DCF) Analysis Unlevered

Information Services Group, Inc. (III)

$4.72

-0.05 (-1.05%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.30 | 4.72 | overvalue

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 269.55275.77265.76249.13277.83280.57283.33286.12288.94291.79
Revenue (%)
EBITDA 21.6120.5720.1115.6326.1021.7221.9422.1522.3722.59
EBITDA (%)
EBIT 8.8912.8013.419.4320.7713.6013.7413.8714.0114.15
EBIT (%)
Depreciation 12.727.776.716.205.338.128.208.288.368.44
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 28.4218.6418.1543.7347.5232.9933.3133.6433.9734.31
Total Cash (%)
Account Receivables 70.8275.9377.0867.4764.3474.6675.4076.1476.8977.65
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 7.198.458.8611.1816.1610.8710.9811.0911.1911.30
Accounts Payable (%)
Capital Expenditure -3.17-4-1.92-1.18-2.66-2.68-2.71-2.73-2.76-2.79
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 4.72
Beta 0.757
Diluted Shares Outstanding 51.76
Cost of Debt
Tax Rate 32.81
After-tax Cost of Debt -2.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.539
Total Debt 77.27
Total Equity 244.29
Total Capital 321.56
Debt Weighting 24.03
Equity Weighting 75.97
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 269.55275.77265.76249.13277.83280.57283.33286.12288.94291.79
EBITDA 21.6120.5720.1115.6326.1021.7221.9422.1522.3722.59
EBIT 8.8912.8013.419.4320.7713.6013.7413.8714.0114.15
Tax Rate 201.43%7.12%53.20%53.05%32.81%69.52%69.52%69.52%69.52%69.52%
EBIAT -9.0211.896.274.4313.964.154.194.234.274.31
Depreciation 12.727.776.716.205.338.128.208.288.368.44
Accounts Receivable --5.11-1.149.603.13-10.32-0.74-0.74-0.75-0.76
Inventories ----------
Accounts Payable -1.260.412.314.99-5.290.110.110.110.11
Capital Expenditure -3.17-4-1.92-1.18-2.66-2.68-2.71-2.73-2.76-2.79
UFCF 0.5411.8110.3321.3624.75-6.039.059.149.239.32
WACC
PV UFCF -5.738.177.847.527.22
SUM PV UFCF 25.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.24
Free cash flow (t + 1) 9.51
Terminal Value 293.38
Present Value of Terminal Value 227.26

Intrinsic Value

Enterprise Value 252.29
Net Debt 29.75
Equity Value 222.54
Shares Outstanding 51.76
Equity Value Per Share 4.30