Discounted Cash Flow (DCF) Analysis Unlevered

CS Disco, Inc. (LAW)

$6.64

+0.33 (+5.23%)
All numbers are in Millions, Currency in USD
Stock DCF: -365.80 | 6.64 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 48.5668.44114.34135.19192.08272.92387.77550.96782.83
Revenue (%)
EBITDA -28.90-20.72-22.05-67.13-76.22-108.30-153.87-218.63-310.64
EBITDA (%)
EBIT -29.70-22.35-23.72-70.11-79.91-113.54-161.33-229.22-325.69
EBIT (%)
Depreciation 0.801.621.672.973.695.257.4610.5915.05
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 23.2258.57255.48203.24243.55346.04491.67698.58992.57
Total Cash (%)
Account Receivables 7.3612.9120.7422.7233.1247.0666.8695134.98
Account Receivables (%)
Inventories ---------
Inventories (%)
Accounts Payable 3.993.594.698.4911.4416.2623.1032.8246.63
Accounts Payable (%)
Capital Expenditure -3.32-1.90-3.11-4.38-7.48-10.63-15.11-21.47-30.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 6.64
Beta 0.000
Diluted Shares Outstanding 58.75
Cost of Debt
Tax Rate -0.26
After-tax Cost of Debt 4.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.494
Total Debt 10.91
Total Equity 390.12
Total Capital 401.03
Debt Weighting 2.72
Equity Weighting 97.28
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 48.5668.44114.34135.19192.08272.92387.77550.96782.83
EBITDA -28.90-20.72-22.05-67.13-76.22-108.30-153.87-218.63-310.64
EBIT -29.70-22.35-23.72-70.11-79.91-113.54-161.33-229.22-325.69
Tax Rate -0.03%-0.31%-0.33%-0.26%-0.24%-0.24%-0.24%-0.24%-0.24%
EBIAT -29.71-22.42-23.80-70.29-80.10-113.81-161.71-229.76-326.45
Depreciation 0.801.621.672.973.695.257.4610.5915.05
Accounts Receivable --5.55-7.83-1.98-10.40-13.94-19.80-28.14-39.98
Inventories ---------
Accounts Payable --0.401.103.802.964.816.849.7213.81
Capital Expenditure -3.33-1.90-3.11-4.38-7.48-10.63-15.11-21.47-30.50
UFCF -32.23-28.64-31.97-69.88-91.34-128.32-182.33-259.05-368.07
WACC
PV UFCF -91.34-123.96-170.14-233.52-320.51
SUM PV UFCF -907.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.52
Free cash flow (t + 1) -375.44
Terminal Value -24,699.72
Present Value of Terminal Value -20,776.42

Intrinsic Value

Enterprise Value -21,683.93
Net Debt -192.33
Equity Value -21,491.60
Shares Outstanding 58.75
Equity Value Per Share -365.80