Discounted Cash Flow (DCF) Analysis Unlevered
Inovalon Holdings, Inc. (INOV)
$41.06
0.00 (0.00%)
All numbers are in Millions, Currency in USD
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 | 427.59 | 449.36 | 527.68 | 642.41 | 667.52 | 747.92 | 837.99 | 938.91 | 1,051.98 | 1,178.68 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 81.25 | 91.90 | 94.07 | 179.96 | 186.56 | 169.39 | 189.79 | 212.65 | 238.26 | 266.95 |
| EBITDA (%) | ||||||||||
| EBIT | 43.96 | 38.81 | -2.66 | 71.71 | 71.64 | 60.30 | 67.56 | 75.69 | 84.81 | 95.02 |
| EBIT (%) | ||||||||||
| Depreciation | 37.28 | 53.09 | 96.73 | 108.25 | 114.92 | 109.09 | 122.23 | 136.95 | 153.45 | 171.93 |
| 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 | 573 | 476.23 | 122.59 | 93.09 | 123.88 | 443.17 | 496.54 | 556.34 | 623.34 | 698.41 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 100.76 | 102.04 | 114.73 | 144 | 172.67 | 173.96 | 194.91 | 218.39 | 244.69 | 274.16 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 16.47 | 34.11 | 30.19 | 36.76 | 38.19 | 42.79 | 47.95 | 53.72 | 60.19 | 67.44 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -39.03 | -65.54 | -64.97 | -58.94 | -86.61 | -87.02 | -97.50 | -109.24 | -122.40 | -137.14 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 41.06 |
|---|---|
| Beta | 0.529 |
| Diluted Shares Outstanding | 149.72 |
| Cost of Debt | |
| Tax Rate | -46.04 |
| After-tax Cost of Debt | 6.26% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.038 |
| Total Debt | 897.30 |
| Total Equity | 6,147.50 |
| Total Capital | 7,044.81 |
| Debt Weighting | 12.74 |
| Equity Weighting | 87.26 |
| 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 | 427.59 | 449.36 | 527.68 | 642.41 | 667.52 | 747.92 | 837.99 | 938.91 | 1,051.98 | 1,178.68 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 81.25 | 91.90 | 94.07 | 179.96 | 186.56 | 169.39 | 189.79 | 212.65 | 238.26 | 266.95 |
| EBIT | 43.96 | 38.81 | -2.66 | 71.71 | 71.64 | 60.30 | 67.56 | 75.69 | 84.81 | 95.02 |
| Tax Rate | 30.32% | -6.85% | 26.87% | -32.27% | -46.04% | -5.59% | -5.59% | -5.59% | -5.59% | -5.59% |
| EBIAT | 30.63 | 41.47 | -1.94 | 94.85 | 104.62 | 63.67 | 71.34 | 79.93 | 89.55 | 100.34 |
| Depreciation | 37.28 | 53.09 | 96.73 | 108.25 | 114.92 | 109.09 | 122.23 | 136.95 | 153.45 | 171.93 |
| Accounts Receivable | - | -1.29 | -12.69 | -29.27 | -28.66 | -1.30 | -20.95 | -23.47 | -26.30 | -29.47 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 17.64 | -3.92 | 6.56 | 1.44 | 4.60 | 5.15 | 5.77 | 6.47 | 7.25 |
| Capital Expenditure | -39.03 | -65.54 | -64.97 | -58.94 | -86.61 | -87.02 | -97.50 | -109.24 | -122.40 | -137.14 |
| UFCF | 28.89 | 45.37 | 13.20 | 121.46 | 105.71 | 89.04 | 80.27 | 89.94 | 100.77 | 112.90 |
| WACC | ||||||||||
| PV UFCF | 83.27 | 70.19 | 73.54 | 77.05 | 80.72 | |||||
| SUM PV UFCF | 384.77 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.94 |
| Free cash flow (t + 1) | 115.16 |
| Terminal Value | 2,331.20 |
| Present Value of Terminal Value | 1,666.78 |
Intrinsic Value
| Enterprise Value | 2,051.54 |
|---|---|
| Net Debt | 773.42 |
| Equity Value | 1,278.12 |
| Shares Outstanding | 149.72 |
| Equity Value Per Share | 8.54 |