Discounted Cash Flow (DCF) Analysis Unlevered
Rimini Street, Inc. (RMNI)
$2.15
-0.01 (-0.46%)
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 | 252.79 | 281.05 | 326.78 | 374.43 | 409.66 | 462.35 | 521.81 | 588.91 | 664.65 | 750.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | -33.78 | 19.81 | 33.35 | 43.69 | 38.88 | 23.16 | 26.14 | 29.50 | 33.30 | 37.58 |
| EBITDA (%) | ||||||||||
| EBIT | -35.62 | 17.89 | 25.34 | 35.15 | 30.85 | 15.67 | 17.69 | 19.96 | 22.53 | 25.43 |
| EBIT (%) | ||||||||||
| Depreciation | 1.84 | 1.91 | 8 | 8.54 | 8.03 | 7.49 | 8.45 | 9.54 | 10.77 | 12.15 |
| 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 | 24.77 | 37.95 | 87.58 | 119.57 | 129.12 | 105 | 118.51 | 133.75 | 150.95 | 170.36 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 80.60 | 111.57 | 117.94 | 135.45 | 116.09 | 159.22 | 179.70 | 202.80 | 228.89 | 258.32 |
| Account Receivables (%) | ||||||||||
| Inventories | 0.44 | 12.19 | 14.25 | 15.40 | 17.64 | 15.99 | 18.05 | 20.37 | 22.99 | 25.94 |
| Inventories (%) | ||||||||||
| Accounts Payable | 12.85 | 2.30 | 3.24 | 5.71 | 8.04 | 9.60 | 10.83 | 12.23 | 13.80 | 15.58 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -1.05 | -1.87 | -1.48 | -2.11 | -4.33 | -2.92 | -3.29 | -3.72 | -4.20 | -4.74 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 2.15 |
|---|---|
| Beta | 0.867 |
| Diluted Shares Outstanding | 87.67 |
| Cost of Debt | |
| Tax Rate | 165.18 |
| After-tax Cost of Debt | -3.16% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.718 |
| Total Debt | 88.11 |
| Total Equity | 188.49 |
| Total Capital | 276.60 |
| Debt Weighting | 31.85 |
| Equity Weighting | 68.15 |
| 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 | 252.79 | 281.05 | 326.78 | 374.43 | 409.66 | 462.35 | 521.81 | 588.91 | 664.65 | 750.12 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -33.78 | 19.81 | 33.35 | 43.69 | 38.88 | 23.16 | 26.14 | 29.50 | 33.30 | 37.58 |
| EBIT | -35.62 | 17.89 | 25.34 | 35.15 | 30.85 | 15.67 | 17.69 | 19.96 | 22.53 | 25.43 |
| Tax Rate | -3.02% | 13.41% | 26.04% | -287.03% | 165.18% | -17.09% | -17.09% | -17.09% | -17.09% | -17.09% |
| EBIAT | -36.70 | 15.49 | 18.74 | 136.04 | -20.10 | 18.35 | 20.71 | 23.37 | 26.38 | 29.77 |
| Depreciation | 1.84 | 1.91 | 8 | 8.54 | 8.03 | 7.49 | 8.45 | 9.54 | 10.77 | 12.15 |
| Accounts Receivable | - | -30.97 | -6.36 | -17.51 | 19.35 | -43.13 | -20.48 | -23.11 | -26.08 | -29.44 |
| Inventories | - | -11.75 | -2.06 | -1.15 | -2.24 | 1.65 | -2.06 | -2.32 | -2.62 | -2.96 |
| Accounts Payable | - | -10.55 | 0.94 | 2.47 | 2.33 | 1.56 | 1.23 | 1.39 | 1.57 | 1.77 |
| Capital Expenditure | -1.05 | -1.87 | -1.48 | -2.11 | -4.33 | -2.92 | -3.29 | -3.72 | -4.20 | -4.74 |
| UFCF | -35.91 | -37.74 | 17.78 | 126.28 | 3.05 | -16.99 | 4.57 | 5.16 | 5.82 | 6.57 |
| WACC | ||||||||||
| PV UFCF | -16.19 | 4.15 | 4.46 | 4.80 | 5.16 | |||||
| SUM PV UFCF | 2.39 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.93 |
| Free cash flow (t + 1) | 6.70 |
| Terminal Value | 228.67 |
| Present Value of Terminal Value | 179.77 |
Intrinsic Value
| Enterprise Value | 182.15 |
|---|---|
| Net Debt | -20.90 |
| Equity Value | 203.05 |
| Shares Outstanding | 87.67 |
| Equity Value Per Share | 2.32 |