Discounted Cash Flow (DCF) Analysis Unlevered

Nuance Communications, Inc. (NUAN)

$55.99

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 5.01 | 55.99 | overvalue

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 1,939.362,051.661,823.091,478.901,362.381,253.021,152.441,059.93974.85896.59
Revenue (%)
EBITDA 272.29130.83404.10213.09149.46170.31156.64144.07132.50121.87
EBITDA (%)
EBIT 37.87-79.48245.3196.6156.4255.6551.1947.0843.3039.82
EBIT (%)
Depreciation 234.41210.32158.79116.4893.04114.66105.4696.9989.2182.04
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 844.28451.54747.52372.35209.47368.63339.04311.83286.80263.77
Total Cash (%)
Account Receivables 395.39378.83308.60200.58162.29203.63187.28172.25158.42145.70
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 94.6084.52104.8675.1290.1266.2760.9556.0651.5647.42
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 1,939.362,051.661,823.091,478.901,362.381,253.021,152.441,059.93974.85896.59
EBITDA 272.29130.83404.10213.09149.46170.31156.64144.07132.50121.87
EBIT 37.87-79.48245.3196.6156.4255.6551.1947.0843.3039.82
Tax Rate -26.87%26.21%-730.52%-113.32%-123.39%-193.58%-193.58%-193.58%-193.58%-193.58%
EBIAT 48.05-58.652,037.37206.09126.02163.39150.27138.21127.12116.91
Depreciation 234.41210.32158.79116.4893.04114.66105.4696.9989.2182.04
Accounts Receivable -16.5670.23108.0238.28-41.3416.3515.0313.8312.72
Inventories ----------
Accounts Payable --10.0920.35-29.7415-23.85-5.32-4.89-4.50-4.14
Capital Expenditure -61.84-48.84-44.19-61.30-56.51-40.81-37.54-34.52-31.75-29.20
UFCF 220.63109.292,242.55339.56215.83172.05229.22210.82193.90178.33
WACC
PV UFCF 156.97190.79160.09134.33112.71
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