Discounted Cash Flow (DCF) Analysis Unlevered

Immersion Corporation (IMMR)

$ 5.7
-0.18 (-3.06%)
Stock DCF: -16.71 | 5.7 | overvalue

Operating Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 57.0935.01110.9835.9530.4637.7246.7257.8671.6688.75
Revenue (%)
EBITDA -13.85-43.8455.59-17.385.09-9.88-12.24-15.16-18.78-23.26
EBITDA (%)
EBIT -14.76-44.8154.74-19.573.16-11.21-13.88-17.20-21.30-26.38
EBIT (%)
Depreciation 0.910.970.852.201.931.331.642.032.523.12
Depreciation (%)

Balance Sheet Data

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Total Cash 89.7746.54124.9289.5059.5263.9179.1598.03121.41150.36
Total Cash (%)
Account Receivables 1.380.811.053.392.221.692.092.593.213.97
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 5.956.653.610.810.152.673.314.105.076.28
Accounts Payable (%)
Capital Expenditure -0.34-0.12-0.07-0.15-0.05-0.12-0.15-0.18-0.23-0.28
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 5.7
Beta 1.857
Diluted Shares Outstanding 28.48
Cost of Debt
Tax Rate -70.97
After-tax Cost of Debt 5.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.245
Total Debt 1.38
Total Equity 162.32
Total Capital 163.70
Debt Weighting 0.84
Equity Weighting 99.16
Wacc

Build Up Free Cash

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 57.0935.01110.9835.9530.4637.7246.7257.8671.6688.75
EBITDA -13.85-43.8455.59-17.385.09-9.88-12.24-15.16-18.78-23.26
EBIT -14.76-44.8154.74-19.573.16-11.21-13.88-17.20-21.30-26.38
Tax Rate -171.42%-1.07%0.72%-2.41%-70.97%-49.03%-49.03%-49.03%-49.03%-49.03%
EBIAT -40.07-45.2954.34-20.045.40-16.71-20.69-25.63-31.74-39.31
Depreciation 0.910.970.852.201.931.331.642.032.523.12
Accounts Receivable -0.58-0.25-2.331.170.53-0.40-0.50-0.62-0.76
Inventories ----------
Accounts Payable -0.70-3.03-2.80-0.662.520.640.790.981.21
Capital Expenditure -0.34-0.13-0.07-0.15-0.05-0.12-0.15-0.18-0.23-0.28
UFCF -39.51-43.1851.84-23.137.79-12.45-18.96-23.49-29.09-36.03
WACC
PV UFCF -11.30-15.62-17.55-19.72-22.17
SUM PV UFCF -86.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.20
Free cash flow (t + 1) -37.83
Terminal Value -727.45
Present Value of Terminal Value -447.60

Intrinsic Value

Enterprise Value -533.95
Net Debt -58.14
Equity Value -475.81
Shares Outstanding 28.48
Equity Value Per Share -16.71