Discounted Cash Flow (DCF) Analysis Unlevered
Datto Holding Corp. (MSP)
$35.18
0.00 (0.00%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 387.36 | 458.75 | 518.78 | 618.66 | 723.35 | 845.77 | 988.90 | 1,156.25 | 1,351.92 |
|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||
| EBITDA | 49.49 | 52.90 | 105.02 | 121 | 115.94 | 135.56 | 158.50 | 185.32 | 216.68 |
| EBITDA (%) | |||||||||
| EBIT | 7.62 | 9.74 | 55.91 | 61.82 | 44.95 | 52.56 | 61.45 | 71.85 | 84.01 |
| EBIT (%) | |||||||||
| Depreciation | 41.88 | 43.16 | 49.11 | 59.18 | 70.98 | 83 | 97.04 | 113.46 | 132.67 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Total Cash | 34.56 | 27.60 | 168.88 | 221.42 | 150.60 | 176.09 | 205.89 | 240.73 | 281.47 |
|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||||
| Account Receivables | 20.09 | 27.32 | 21.66 | 24.83 | 34.96 | 40.88 | 47.79 | 55.88 | 65.34 |
| Account Receivables (%) | |||||||||
| Inventories | 12.03 | 12.41 | 13.81 | 34.90 | 25.52 | 29.84 | 34.89 | 40.80 | 47.70 |
| Inventories (%) | |||||||||
| Accounts Payable | 3.51 | 16.05 | 7.57 | 10 | 13.53 | 15.81 | 18.49 | 21.62 | 25.28 |
| Accounts Payable (%) | |||||||||
| Capital Expenditure | -28.20 | -38.23 | -40.47 | -47.24 | -56.15 | -65.65 | -76.76 | -89.75 | -104.94 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 35.18 |
|---|---|
| Beta | 0.510 |
| Diluted Shares Outstanding | 166.25 |
| Cost of Debt | |
| Tax Rate | 16.18 |
| After-tax Cost of Debt | 0.95% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.915 |
| Total Debt | 40.34 |
| Total Equity | 5,848.64 |
| Total Capital | 5,888.98 |
| Debt Weighting | 0.69 |
| Equity Weighting | 99.31 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 387.36 | 458.75 | 518.78 | 618.66 | 723.35 | 845.77 | 988.90 | 1,156.25 | 1,351.92 |
|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 49.49 | 52.90 | 105.02 | 121 | 115.94 | 135.56 | 158.50 | 185.32 | 216.68 |
| EBIT | 7.62 | 9.74 | 55.91 | 61.82 | 44.95 | 52.56 | 61.45 | 71.85 | 84.01 |
| Tax Rate | 21.02% | 7.45% | 26.38% | 16.18% | 17.76% | 17.76% | 17.76% | 17.76% | 17.76% |
| EBIAT | 6.01 | 9.01 | 41.16 | 51.82 | 36.97 | 43.23 | 50.54 | 59.09 | 69.09 |
| Depreciation | 41.88 | 43.16 | 49.11 | 59.18 | 70.98 | 83 | 97.04 | 113.46 | 132.67 |
| Accounts Receivable | - | -7.23 | 5.66 | -3.17 | -10.13 | -5.92 | -6.92 | -8.09 | -9.46 |
| Inventories | - | -0.39 | -1.40 | -21.09 | 9.38 | -4.32 | -5.05 | -5.91 | -6.90 |
| Accounts Payable | - | 12.54 | -8.47 | 2.42 | 3.53 | 2.29 | 2.68 | 3.13 | 3.66 |
| Capital Expenditure | -28.20 | -38.23 | -40.47 | -47.24 | -56.15 | -65.65 | -76.76 | -89.75 | -104.94 |
| UFCF | 19.69 | 18.87 | 45.60 | 41.92 | 54.59 | 52.63 | 61.53 | 71.95 | 84.12 |
| WACC | |||||||||
| PV UFCF | 54.59 | 49.70 | 54.89 | 60.61 | 66.93 | ||||
| SUM PV UFCF | 270.80 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.88 |
| Free cash flow (t + 1) | 85.80 |
| Terminal Value | 2,211.45 |
| Present Value of Terminal Value | 1,661.91 |
Intrinsic Value
| Enterprise Value | 1,932.71 |
|---|---|
| Net Debt | -181.08 |
| Equity Value | 2,113.79 |
| Shares Outstanding | 166.25 |
| Equity Value Per Share | 12.71 |