Discounted Cash Flow (DCF) Analysis Unlevered
Nuance Communications, Inc. (NUAN)
$55.99
0.00 (0.00%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 1,939.36 | 2,051.66 | 1,823.09 | 1,478.90 | 1,362.38 | 1,253.02 | 1,152.44 | 1,059.93 | 974.85 | 896.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 272.29 | 130.83 | 404.10 | 213.09 | 149.46 | 170.31 | 156.64 | 144.07 | 132.50 | 121.87 |
| EBITDA (%) | ||||||||||
| EBIT | 37.87 | -79.48 | 245.31 | 96.61 | 56.42 | 55.65 | 51.19 | 47.08 | 43.30 | 39.82 |
| EBIT (%) | ||||||||||
| Depreciation | 234.41 | 210.32 | 158.79 | 116.48 | 93.04 | 114.66 | 105.46 | 96.99 | 89.21 | 82.04 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Total Cash | 844.28 | 451.54 | 747.52 | 372.35 | 209.47 | 368.63 | 339.04 | 311.83 | 286.80 | 263.77 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 395.39 | 378.83 | 308.60 | 200.58 | 162.29 | 203.63 | 187.28 | 172.25 | 158.42 | 145.70 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 94.60 | 84.52 | 104.86 | 75.12 | 90.12 | 66.27 | 60.95 | 56.06 | 51.56 | 47.42 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -61.84 | -48.85 | -44.19 | -61.30 | -56.51 | -40.81 | -37.54 | -34.52 | -31.75 | -29.20 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 55.99 |
|---|---|
| Beta | 1.087 |
| Diluted Shares Outstanding | 294.59 |
| Cost of Debt | |
| Tax Rate | -123.39 |
| After-tax Cost of Debt | 7.95% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.704 |
| Total Debt | 977.74 |
| Total Equity | 16,494.04 |
| Total Capital | 17,471.77 |
| Debt Weighting | 5.60 |
| Equity Weighting | 94.40 |
| Wacc |
Build Up Free Cash
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 1,939.36 | 2,051.66 | 1,823.09 | 1,478.90 | 1,362.38 | 1,253.02 | 1,152.44 | 1,059.93 | 974.85 | 896.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 272.29 | 130.83 | 404.10 | 213.09 | 149.46 | 170.31 | 156.64 | 144.07 | 132.50 | 121.87 |
| EBIT | 37.87 | -79.48 | 245.31 | 96.61 | 56.42 | 55.65 | 51.19 | 47.08 | 43.30 | 39.82 |
| Tax Rate | -26.87% | 26.21% | -730.52% | -113.32% | -123.39% | -193.58% | -193.58% | -193.58% | -193.58% | -193.58% |
| EBIAT | 48.05 | -58.65 | 2,037.37 | 206.09 | 126.02 | 163.39 | 150.27 | 138.21 | 127.12 | 116.91 |
| Depreciation | 234.41 | 210.32 | 158.79 | 116.48 | 93.04 | 114.66 | 105.46 | 96.99 | 89.21 | 82.04 |
| Accounts Receivable | - | 16.56 | 70.23 | 108.02 | 38.28 | -41.34 | 16.35 | 15.03 | 13.83 | 12.72 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -10.09 | 20.35 | -29.74 | 15 | -23.85 | -5.32 | -4.89 | -4.50 | -4.14 |
| Capital Expenditure | -61.84 | -48.84 | -44.19 | -61.30 | -56.51 | -40.81 | -37.54 | -34.52 | -31.75 | -29.20 |
| UFCF | 220.63 | 109.29 | 2,242.55 | 339.56 | 215.83 | 172.05 | 229.22 | 210.82 | 193.90 | 178.33 |
| WACC | ||||||||||
| PV UFCF | 156.97 | 190.79 | 160.09 | 134.33 | 112.71 | |||||
| SUM PV UFCF | 754.89 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.61 |
| Free cash flow (t + 1) | 181.90 |
| Terminal Value | 2,390.27 |
| Present Value of Terminal Value | 1,510.76 |
Intrinsic Value
| Enterprise Value | 2,265.65 |
|---|---|
| Net Debt | 790.43 |
| Equity Value | 1,475.22 |
| Shares Outstanding | 294.59 |
| Equity Value Per Share | 5.01 |