Discounted Cash Flow (DCF) Analysis Unlevered

Inovalon Holdings, Inc. (INOV)

$41.06

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 8.54 | 41.06 | 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 427.59449.36527.68642.41667.52747.92837.99938.911,051.981,178.68
Revenue (%)
EBITDA 81.2591.9094.07179.96186.56169.39189.79212.65238.26266.95
EBITDA (%)
EBIT 43.9638.81-2.6671.7171.6460.3067.5675.6984.8195.02
EBIT (%)
Depreciation 37.2853.0996.73108.25114.92109.09122.23136.95153.45171.93
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 573476.23122.5993.09123.88443.17496.54556.34623.34698.41
Total Cash (%)
Account Receivables 100.76102.04114.73144172.67173.96194.91218.39244.69274.16
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 16.4734.1130.1936.7638.1942.7947.9553.7260.1967.44
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 427.59449.36527.68642.41667.52747.92837.99938.911,051.981,178.68
EBITDA 81.2591.9094.07179.96186.56169.39189.79212.65238.26266.95
EBIT 43.9638.81-2.6671.7171.6460.3067.5675.6984.8195.02
Tax Rate 30.32%-6.85%26.87%-32.27%-46.04%-5.59%-5.59%-5.59%-5.59%-5.59%
EBIAT 30.6341.47-1.9494.85104.6263.6771.3479.9389.55100.34
Depreciation 37.2853.0996.73108.25114.92109.09122.23136.95153.45171.93
Accounts Receivable --1.29-12.69-29.27-28.66-1.30-20.95-23.47-26.30-29.47
Inventories ----------
Accounts Payable -17.64-3.926.561.444.605.155.776.477.25
Capital Expenditure -39.03-65.54-64.97-58.94-86.61-87.02-97.50-109.24-122.40-137.14
UFCF 28.8945.3713.20121.46105.7189.0480.2789.94100.77112.90
WACC
PV UFCF 83.2770.1973.5477.0580.72
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