Discounted Cash Flow (DCF) Analysis Unlevered
NetSol Technologies, Inc. (NTWK)
$3.08
-0.02 (-0.65%)
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 | $ 3.08 |
|---|---|
| Beta | 0.741 |
| 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 | 7.095 |
| Total Debt | 10.04 |
| Total Equity | 34.65 |
| Total Capital | 44.69 |
| Debt Weighting | 22.46 |
| Equity Weighting | 77.54 |
| 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 | 3.12 | 2.94 | 2.77 | 2.60 | |||||
| SUM PV UFCF | 11.47 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.16 |
| Free cash flow (t + 1) | 3.42 |
| Terminal Value | 108.11 |
| Present Value of Terminal Value | 84.07 |
Intrinsic Value
| Enterprise Value | 95.53 |
|---|---|
| Net Debt | -13.92 |
| Equity Value | 109.46 |
| Shares Outstanding | 11.25 |
| Equity Value Per Share | 9.73 |