Discounted Cash Flow (DCF) Analysis Unlevered
NetSol Technologies, Inc. (NTWK)
$3.16
-0.04 (-1.25%)
All numbers are in Millions, Currency in USD
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 | 60.93 | 67.82 | 56.37 | 54.92 | 57.25 | 56.69 | 56.13 | 55.59 | 55.04 | 54.50 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
EBITDA | 11.18 | 14.38 | 6.16 | 7.16 | 4.32 | 8.05 | 7.98 | 7.90 | 7.82 | 7.74 |
EBITDA (%) | ||||||||||
EBIT | 5.60 | 9.95 | 2.43 | 3.20 | 0.51 | 3.96 | 3.92 | 3.88 | 3.84 | 3.80 |
EBIT (%) | ||||||||||
Depreciation | 5.57 | 4.42 | 3.73 | 3.96 | 3.81 | 4.10 | 4.06 | 4.02 | 3.98 | 3.94 |
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 | 22.09 | 17.37 | 20.17 | 33.71 | 23.96 | 22.77 | 22.55 | 22.33 | 22.11 | 21.90 |
---|---|---|---|---|---|---|---|---|---|---|
Total Cash (%) | ||||||||||
Account Receivables | 33.06 | 34.81 | 29.86 | 19.01 | 23.26 | 26.51 | 26.25 | 25.99 | 25.74 | 25.49 |
Account Receivables (%) | ||||||||||
Inventories | - | - | - | - | - | - | - | - | - | - |
Inventories (%) | ||||||||||
Accounts Payable | 1.67 | 1.16 | 1.35 | 1.07 | 1.18 | 1.23 | 1.22 | 1.20 | 1.19 | 1.18 |
Accounts Payable (%) | ||||||||||
Capital Expenditure | -2.45 | -2.73 | -1.38 | -2.55 | -2.61 | -2.23 | -2.21 | -2.19 | -2.17 | -2.15 |
Capital Expenditure (%) |
Weighted Average Cost Of Capital
Share price | $ 3.16 |
---|---|
Beta | 0.690 |
Diluted Shares Outstanding | 11.25 |
Cost of Debt | |
Tax Rate | 140.73 |
After-tax Cost of Debt | -1.50% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 6.790 |
Total Debt | 10.04 |
Total Equity | 35.55 |
Total Capital | 45.59 |
Debt Weighting | 22.02 |
Equity Weighting | 77.98 |
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 | 60.93 | 67.82 | 56.37 | 54.92 | 57.25 | 56.69 | 56.13 | 55.59 | 55.04 | 54.50 |
---|---|---|---|---|---|---|---|---|---|---|
EBITDA | 11.18 | 14.38 | 6.16 | 7.16 | 4.32 | 8.05 | 7.98 | 7.90 | 7.82 | 7.74 |
EBIT | 5.60 | 9.95 | 2.43 | 3.20 | 0.51 | 3.96 | 3.92 | 3.88 | 3.84 | 3.80 |
Tax Rate | 46.32% | 34.35% | 59.84% | 45.92% | 140.73% | 65.43% | 65.43% | 65.43% | 65.43% | 65.43% |
EBIAT | 3.01 | 6.53 | 0.97 | 1.73 | -0.21 | 1.37 | 1.35 | 1.34 | 1.33 | 1.31 |
Depreciation | 5.57 | 4.42 | 3.73 | 3.96 | 3.81 | 4.10 | 4.06 | 4.02 | 3.98 | 3.94 |
Accounts Receivable | - | -1.76 | 4.95 | 10.85 | -4.26 | -3.24 | 0.26 | 0.26 | 0.25 | 0.25 |
Inventories | - | - | - | - | - | - | - | - | - | - |
Accounts Payable | - | -0.51 | 0.19 | -0.28 | 0.11 | 0.05 | -0.01 | -0.01 | -0.01 | -0.01 |
Capital Expenditure | -2.45 | -2.73 | -1.38 | -2.55 | -2.61 | -2.23 | -2.21 | -2.19 | -2.17 | -2.15 |
UFCF | 6.13 | 5.97 | 8.48 | 13.70 | -3.15 | 0.04 | 3.45 | 3.42 | 3.38 | 3.35 |
WACC | ||||||||||
PV UFCF | 0.04 | 3.13 | 2.95 | 2.79 | 2.63 | |||||
SUM PV UFCF | 11.54 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 4.96 |
Free cash flow (t + 1) | 3.42 |
Terminal Value | 115.42 |
Present Value of Terminal Value | 90.61 |
Intrinsic Value
Enterprise Value | 102.15 |
---|---|
Net Debt | -13.92 |
Equity Value | 116.07 |
Shares Outstanding | 11.25 |
Equity Value Per Share | 10.32 |