Discounted Cash Flow (DCF) Analysis Unlevered
Information Services Corporation (ISV.TO)
$21
-0.05 (-0.24%)
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 | 119.13 | 132.97 | 136.72 | 169.38 | 189.89 | 213.84 | 240.80 | 271.16 | 305.36 | 343.86 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 36.28 | 39.31 | 43.78 | 60.67 | 61.39 | 68.51 | 77.15 | 86.88 | 97.83 | 110.16 |
| EBITDA (%) | ||||||||||
| EBIT | 26.41 | 27.91 | 30.92 | 46.89 | 46.66 | 50.48 | 56.84 | 64.01 | 72.08 | 81.17 |
| EBIT (%) | ||||||||||
| Depreciation | 9.87 | 11.40 | 12.86 | 13.78 | 14.73 | 18.03 | 20.30 | 22.86 | 25.75 | 28.99 |
| 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 | 29.10 | 24.21 | 34 | 40.14 | 34.48 | 46.77 | 52.66 | 59.30 | 66.78 | 75.20 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 8.52 | 13.74 | 15.30 | 13.54 | 18.13 | 19.77 | 22.26 | 25.07 | 28.23 | 31.79 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 1.35 | 0.73 | 3.34 | 2.50 | 7.44 | 4.07 | 4.58 | 5.16 | 5.81 | 6.55 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -2.78 | -2.83 | -1.44 | -2.23 | -1.46 | -3.25 | -3.66 | -4.12 | -4.64 | -5.23 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 21 |
|---|---|
| Beta | 0.540 |
| Diluted Shares Outstanding | 18.02 |
| Cost of Debt | |
| Tax Rate | 28.47 |
| After-tax Cost of Debt | 3.48% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.261 |
| Total Debt | 74.85 |
| Total Equity | 378.37 |
| Total Capital | 453.22 |
| Debt Weighting | 16.52 |
| Equity Weighting | 83.48 |
| 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 | 119.13 | 132.97 | 136.72 | 169.38 | 189.89 | 213.84 | 240.80 | 271.16 | 305.36 | 343.86 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 36.28 | 39.31 | 43.78 | 60.67 | 61.39 | 68.51 | 77.15 | 86.88 | 97.83 | 110.16 |
| EBIT | 26.41 | 27.91 | 30.92 | 46.89 | 46.66 | 50.48 | 56.84 | 64.01 | 72.08 | 81.17 |
| Tax Rate | 27.13% | 26.46% | 27.24% | 27.23% | 28.47% | 27.31% | 27.31% | 27.31% | 27.31% | 27.31% |
| EBIAT | 19.25 | 20.52 | 22.50 | 34.13 | 33.37 | 36.69 | 41.32 | 46.53 | 52.40 | 59.01 |
| Depreciation | 9.87 | 11.40 | 12.86 | 13.78 | 14.73 | 18.03 | 20.30 | 22.86 | 25.75 | 28.99 |
| Accounts Receivable | - | -5.22 | -1.56 | 1.75 | -4.59 | -1.63 | -2.49 | -2.81 | -3.16 | -3.56 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -0.62 | 2.61 | -0.84 | 4.95 | -3.37 | 0.51 | 0.58 | 0.65 | 0.73 |
| Capital Expenditure | -2.77 | -2.83 | -1.44 | -2.23 | -1.46 | -3.25 | -3.66 | -4.12 | -4.64 | -5.23 |
| UFCF | 26.34 | 23.26 | 34.96 | 46.59 | 47 | 46.47 | 55.99 | 63.05 | 71 | 79.95 |
| WACC | ||||||||||
| PV UFCF | 43.92 | 50.02 | 53.24 | 56.66 | 60.31 | |||||
| SUM PV UFCF | 264.15 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.80 |
| Free cash flow (t + 1) | 81.55 |
| Terminal Value | 2,145.98 |
| Present Value of Terminal Value | 1,618.82 |
Intrinsic Value
| Enterprise Value | 1,882.96 |
|---|---|
| Net Debt | 40.38 |
| Equity Value | 1,842.59 |
| Shares Outstanding | 18.02 |
| Equity Value Per Share | 102.27 |