Discounted Cash Flow (DCF) Analysis Unlevered

LivePerson, Inc. (LPSN)

$8.86

-0.73 (-7.61%)
All numbers are in Millions, Currency in USD
Stock DCF: -64.05 | 8.86 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 218.88249.84291.61366.62469.62569.05689.52835.501,012.381,226.71
Revenue (%)
EBITDA -0.65-7.17-66.52-64.42-56.94-63.36-76.78-93.03-112.73-136.59
EBITDA (%)
EBIT -17.69-24.17-85.82-90.79-89.97-103.69-125.65-152.25-184.48-223.53
EBIT (%)
Depreciation 17.041719.3026.3833.0340.3348.8759.2171.7586.94
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 56.1166.45176.52654.15521.85457.87554.81672.27814.60987.05
Total Cash (%)
Account Receivables 37.9346.0287.6280.4293.80122.58148.53179.98218.08264.25
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 5.488.1712.3014.1116.9419.8624.0729.1635.3442.82
Accounts Payable (%)
Capital Expenditure -17.39-21.94-47.58-41.64-48.31-62.24-75.42-91.38-110.73-134.17
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.86
Beta 1.288
Diluted Shares Outstanding 69.80
Cost of Debt
Tax Rate 1.89
After-tax Cost of Debt 6.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.775
Total Debt 580.35
Total Equity 618.42
Total Capital 1,198.77
Debt Weighting 48.41
Equity Weighting 51.59
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 218.88249.84291.61366.62469.62569.05689.52835.501,012.381,226.71
EBITDA -0.65-7.17-66.52-64.42-56.94-63.36-76.78-93.03-112.73-136.59
EBIT -17.69-24.17-85.82-90.79-89.97-103.69-125.65-152.25-184.48-223.53
Tax Rate -2.83%-3.55%-3.05%-2.35%1.89%-1.98%-1.98%-1.98%-1.98%-1.98%
EBIAT -18.19-25.03-88.44-92.92-88.27-105.74-128.13-155.26-188.13-227.96
Depreciation 17.041719.3026.3833.0340.3348.8759.2171.7586.94
Accounts Receivable --8.10-41.607.20-13.38-28.78-25.95-31.45-38.10-46.17
Inventories ----------
Accounts Payable -2.694.131.812.832.924.215.106.177.48
Capital Expenditure -17.39-21.94-47.58-41.64-48.31-62.24-75.42-91.38-110.73-134.17
UFCF -18.54-35.37-154.19-99.18-114.11-153.51-176.43-213.78-259.04-313.88
WACC
PV UFCF -142-150.95-169.19-189.63-212.54
SUM PV UFCF -864.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.11
Free cash flow (t + 1) -320.16
Terminal Value -5,239.88
Present Value of Terminal Value -3,548.07

Intrinsic Value

Enterprise Value -4,412.37
Net Debt 58.51
Equity Value -4,470.87
Shares Outstanding 69.80
Equity Value Per Share -64.05