Discounted Cash Flow (DCF) Analysis Unlevered

NetSol Technologies, Inc. (NTWK)

$3.08

-0.02 (-0.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 9.73 | 3.08 | 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 60.9367.8256.3754.9257.2556.6956.1355.5955.0454.50
Revenue (%)
EBITDA 11.1814.386.167.164.328.057.987.907.827.74
EBITDA (%)
EBIT 5.609.952.433.200.513.963.923.883.843.80
EBIT (%)
Depreciation 5.574.423.733.963.814.104.064.023.983.94
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 22.0917.3720.1733.7123.9622.7722.5522.3322.1121.90
Total Cash (%)
Account Receivables 33.0634.8129.8619.0123.2626.5126.2525.9925.7425.49
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1.671.161.351.071.181.231.221.201.191.18
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 60.9367.8256.3754.9257.2556.6956.1355.5955.0454.50
EBITDA 11.1814.386.167.164.328.057.987.907.827.74
EBIT 5.609.952.433.200.513.963.923.883.843.80
Tax Rate 46.32%34.35%59.84%45.92%140.73%65.43%65.43%65.43%65.43%65.43%
EBIAT 3.016.530.971.73-0.211.371.351.341.331.31
Depreciation 5.574.423.733.963.814.104.064.023.983.94
Accounts Receivable --1.764.9510.85-4.26-3.240.260.260.250.25
Inventories ----------
Accounts Payable --0.510.19-0.280.110.05-0.01-0.01-0.01-0.01
Capital Expenditure -2.45-2.73-1.38-2.55-2.61-2.23-2.21-2.19-2.17-2.15
UFCF 6.135.978.4813.70-3.150.043.453.423.383.35
WACC
PV UFCF 0.043.122.942.772.60
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