Discounted Cash Flow (DCF) Analysis Unlevered

Micro Focus International plc (MFGP)

$6.48

-0.03 (-0.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 555.31 | 6.48 | undervalue

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 1,380.703,208.683,348.403,0012,899.903,791.664,957.646,482.188,475.5311,081.86
Revenue (%)
EBITDA 526.40872.852,204.70-1,935.10810.20717.60938.271,226.801,604.052,097.32
EBITDA (%)
EBIT 278.17243.871,682.60-2,744.20-253.20-168.17-219.88-287.50-375.91-491.51
EBIT (%)
Depreciation 248.23628.98522.10809.101,063.40885.771,158.151,514.301,979.962,588.83
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Projected
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 150.98350.88366.16328.17317.11414.63542.13708.84926.821,211.83
Total Cash (%)
Account Receivables --1,019.10776.70816.571,067.671,395.991,825.282,386.573,120.48
Account Receivables (%)
Inventories 0.060.150.160.140.130.180.230.300.390.51
Inventories (%)
Accounts Payable 16.8939.2540.9636.7135.4846.3960.6579.30103.69135.57
Accounts Payable (%)
Capital Expenditure -43.16-122.50-56.30-26.30-65.20-89.11-116.51-152.33-199.18-260.43
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 6.48
Beta 0.000
Diluted Shares Outstanding 336.50
Cost of Debt
Tax Rate 18.04
After-tax Cost of Debt 4.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.745
Total Debt 4,742.90
Total Equity 2,180.52
Total Capital 6,923.42
Debt Weighting 68.51
Equity Weighting 31.49
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 1,380.703,208.683,348.403,0012,899.903,791.664,957.646,482.188,475.5311,081.86
EBITDA 526.40872.852,204.70-1,935.10810.20717.60938.271,226.801,604.052,097.32
EBIT 278.17243.871,682.60-2,744.20-253.20-168.17-219.88-287.50-375.91-491.51
Tax Rate 19.58%-840.46%4,407.33%-0.99%18.04%720.70%720.70%720.70%720.70%720.70%
EBIAT 223.712,293.48-72,475.16-2,771.36-207.531,043.821,364.811,784.512,333.273,050.77
Depreciation 248.23628.98522.10809.101,063.40885.771,158.151,514.301,979.962,588.83
Accounts Receivable ---242.40-39.87-251.10-328.32-429.29-561.30-733.90
Inventories --0.08-0.010.020-0.04-0.05-0.07-0.09-0.12
Accounts Payable -22.361.71-4.25-1.2410.9114.2618.6524.3931.88
Capital Expenditure -43.16-122.50-56.30-26.30-65.20-89.11-116.51-152.33-199.18-260.43
UFCF 428.782,822.23-72,007.66-1,750.39749.571,600.252,092.342,735.763,577.054,677.03
WACC
PV UFCF 1,536.041,927.812,419.503,036.603,811.09
SUM PV UFCF 12,731.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.18
Free cash flow (t + 1) 4,770.57
Terminal Value 218,833.65
Present Value of Terminal Value 178,316.83

Intrinsic Value

Enterprise Value 191,047.86
Net Debt 4,184.50
Equity Value 186,863.36
Shares Outstanding 336.50
Equity Value Per Share 555.31