Discounted Cash Flow (DCF) Analysis Unlevered

Magic Software Enterprises Ltd. (MGIC)

$11.1899

+0.06 (+0.54%)
All numbers are in Millions, Currency in USD
Stock DCF: 16.98 | 11.1899 | undervalue

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 284.38325.63371.19480.32566.79674.34802.30954.541,135.671,351.17
Revenue (%)
EBITDA 44.2647.6855.6168.4176.7998.43117.10139.33165.76197.22
EBITDA (%)
EBIT 31.7033.6541.6853.7461.3273.7987.80104.46124.28147.86
EBIT (%)
Depreciation 12.5614.0313.9414.6715.4724.6329.3134.8741.4949.36
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 113.9295.5189.6594.8286.97173.48206.40245.56292.16347.60
Total Cash (%)
Account Receivables 97.34109.54121.57151.96164.02217.40258.66307.74366.13435.61
Account Receivables (%)
Inventories -3.71-1.11-1.24--6.92-4.32-5.14-6.11-7.27-8.65
Inventories (%)
Accounts Payable 14.0410.9914.2524.7127.6529.9035.5842.3350.3659.92
Accounts Payable (%)
Capital Expenditure -4.53-5.52-6.07-4.63-7.66-9.77-11.62-13.82-16.45-19.57
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 11.1,899
Beta 1.158
Diluted Shares Outstanding 49.14
Cost of Debt
Tax Rate 29.88
After-tax Cost of Debt 3.22%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.672
Total Debt 79.79
Total Equity 549.85
Total Capital 629.64
Debt Weighting 12.67
Equity Weighting 87.33
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 284.38325.63371.19480.32566.79674.34802.30954.541,135.671,351.17
EBITDA 44.2647.6855.6168.4176.7998.43117.10139.33165.76197.22
EBIT 31.7033.6541.6853.7461.3273.7987.80104.46124.28147.86
Tax Rate 37.57%37.59%32.66%34.24%29.88%34.39%34.39%34.39%34.39%34.39%
EBIAT 19.792128.0635.3442.9948.4257.6168.5481.5497.01
Depreciation 12.5614.0313.9414.6715.4724.6329.3134.8741.4949.36
Accounts Receivable --12.20-12.03-30.39-12.06-53.39-41.25-49.08-58.39-69.48
Inventories --2.600.13-1.24--2.600.820.971.161.38
Accounts Payable --3.053.2610.462.932.265.676.758.039.56
Capital Expenditure -4.53-5.52-6.07-4.63-7.66-9.77-11.62-13.82-16.45-19.57
UFCF 27.8211.6627.2824.2241.699.5640.5448.2357.3868.27
WACC
PV UFCF 8.7834.2137.3940.8744.68
SUM PV UFCF 165.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.85
Free cash flow (t + 1) 69.63
Terminal Value 1,016.53
Present Value of Terminal Value 665.24

Intrinsic Value

Enterprise Value 831.18
Net Debt -3.27
Equity Value 834.45
Shares Outstanding 49.14
Equity Value Per Share 16.98