Discounted Cash Flow (DCF) Analysis Unlevered
i3 Verticals, Inc. (IIIV)
$22.85
-0.25 (-1.08%)
All numbers are in Millions, Currency in USD
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 | 323.51 | 376.31 | 150.13 | 224.12 | 317.86 | 355.47 | 397.52 | 444.56 | 497.15 | 555.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 13.78 | 19.35 | 23.93 | 30.38 | 32.10 | 34.83 | 38.95 | 43.56 | 48.71 | 54.48 |
| EBITDA (%) | ||||||||||
| EBIT | 1.94 | 2.78 | 5.71 | 5.96 | 2.68 | 6.15 | 6.87 | 7.69 | 8.60 | 9.62 |
| EBIT (%) | ||||||||||
| Depreciation | 11.84 | 16.56 | 18.22 | 24.42 | 29.42 | 28.68 | 32.08 | 35.87 | 40.12 | 44.86 |
| 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 | 0.57 | 1.12 | 15.57 | 3.64 | 3.49 | 9.64 | 10.79 | 12.06 | 13.49 | 15.08 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 12.50 | 15.33 | 17.54 | 38.50 | 58.26 | 39.19 | 43.83 | 49.02 | 54.81 | 61.30 |
| Account Receivables (%) | ||||||||||
| Inventories | - | 1.29 | 1.31 | 1.36 | 1.93 | 2.16 | 2.42 | 2.70 | 3.02 | 3.38 |
| Inventories (%) | ||||||||||
| Accounts Payable | 4.11 | 3.44 | 3.84 | 7.86 | 9.34 | 7.96 | 8.90 | 9.95 | 11.13 | 12.45 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -4.49 | -3.11 | -5.95 | 47.27 | -12.45 | 7.82 | 8.74 | 9.78 | 10.94 | 12.23 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 22.85 |
|---|---|
| Beta | 1.383 |
| Diluted Shares Outstanding | 22.25 |
| Cost of Debt | |
| Tax Rate | 6.08 |
| After-tax Cost of Debt | 4.55% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.165 |
| Total Debt | 305.58 |
| Total Equity | 508.40 |
| Total Capital | 813.99 |
| Debt Weighting | 37.54 |
| Equity Weighting | 62.46 |
| 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 | 323.51 | 376.31 | 150.13 | 224.12 | 317.86 | 355.47 | 397.52 | 444.56 | 497.15 | 555.97 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 13.78 | 19.35 | 23.93 | 30.38 | 32.10 | 34.83 | 38.95 | 43.56 | 48.71 | 54.48 |
| EBIT | 1.94 | 2.78 | 5.71 | 5.96 | 2.68 | 6.15 | 6.87 | 7.69 | 8.60 | 9.62 |
| Tax Rate | -49.18% | 888.86% | 88.90% | 38.23% | 6.08% | 194.58% | 194.58% | 194.58% | 194.58% | 194.58% |
| EBIAT | 2.89 | -21.95 | 0.63 | 3.68 | 2.52 | -5.81 | -6.50 | -7.27 | -8.13 | -9.09 |
| Depreciation | 11.84 | 16.56 | 18.22 | 24.42 | 29.42 | 28.68 | 32.08 | 35.87 | 40.12 | 44.86 |
| Accounts Receivable | - | -2.83 | -2.20 | -20.96 | -19.76 | 19.07 | -4.64 | -5.19 | -5.80 | -6.49 |
| Inventories | - | - | -0.02 | -0.05 | -0.57 | -0.23 | -0.26 | -0.29 | -0.32 | -0.36 |
| Accounts Payable | - | -0.68 | 0.41 | 4.02 | 1.48 | -1.38 | 0.94 | 1.05 | 1.18 | 1.32 |
| Capital Expenditure | -4.49 | -3.11 | -5.95 | 47.27 | -12.45 | 7.82 | 8.74 | 9.78 | 10.94 | 12.23 |
| UFCF | 10.24 | -12 | 11.09 | 58.38 | 0.64 | 48.15 | 30.37 | 33.96 | 37.98 | 42.47 |
| WACC | ||||||||||
| PV UFCF | 44.56 | 26.01 | 26.91 | 27.85 | 28.83 | |||||
| SUM PV UFCF | 154.16 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.06 |
| Free cash flow (t + 1) | 43.32 |
| Terminal Value | 714.89 |
| Present Value of Terminal Value | 485.19 |
Intrinsic Value
| Enterprise Value | 639.35 |
|---|---|
| Net Debt | 302.09 |
| Equity Value | 337.26 |
| Shares Outstanding | 22.25 |
| Equity Value Per Share | 15.16 |