Discounted Cash Flow (DCF) Analysis Unlevered

Rapid7, Inc. (RPD)

$56.9

+0.59 (+1.05%)
All numbers are in Millions, Currency in USD
Stock DCF: -135.53 | 56.9 | overvalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 326.95411.49535.40685.08777.71967.171,202.801,495.821,860.232,313.43
Revenue (%)
EBITDA -23.89-50.10-88.12-70.29-80.73-109.44-136.11-169.26-210.50-261.78
EBITDA (%)
EBIT -40.41-72.73-121.62-111.32-126.67-164.98-205.17-255.15-317.31-394.62
EBIT (%)
Depreciation 16.5322.6333.5041.0445.9455.5369.0685.89106.81132.83
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 239.57312.46223.43291.45383.17546.94680.19845.891,051.971,308.25
Total Cash (%)
Account Receivables 87.93111.60146.09152.04164.86241.20299.96373.04463.92576.94
Account Receivables (%)
Inventories 17.0521.5429.9734.9141.1051.1263.5779.0698.32122.27
Inventories (%)
Accounts Payable 6.843.863.5210.2615.8113.9617.3621.5926.8533.39
Accounts Payable (%)
Capital Expenditure -35.52-19.93-18.86-37.53-20.24-52.83-65.70-81.70-101.61-126.36
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 56.9
Beta 1.044
Diluted Shares Outstanding 60.76
Cost of Debt
Tax Rate 0.35
After-tax Cost of Debt 4.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.201
Total Debt 1,024.58
Total Equity 3,457.02
Total Capital 4,481.60
Debt Weighting 22.86
Equity Weighting 77.14
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 326.95411.49535.40685.08777.71967.171,202.801,495.821,860.232,313.43
EBITDA -23.89-50.10-88.12-70.29-80.73-109.44-136.11-169.26-210.50-261.78
EBIT -40.41-72.73-121.62-111.32-126.67-164.98-205.17-255.15-317.31-394.62
Tax Rate -0.08%-2.05%-7.67%-1.97%0.35%-2.28%-2.28%-2.28%-2.28%-2.28%
EBIAT -40.45-74.22-130.95-113.52-126.23-168.75-209.86-260.98-324.56-403.63
Depreciation 16.5322.6333.5041.0445.9455.5369.0685.89106.81132.83
Accounts Receivable --23.67-34.49-5.95-12.82-76.34-58.76-73.08-90.88-113.02
Inventories --4.49-8.44-4.93-6.20-10.01-12.45-15.49-19.26-23.95
Accounts Payable --2.98-0.346.735.56-1.853.404.235.266.54
Capital Expenditure -35.52-19.93-18.86-37.53-20.24-52.83-65.70-81.70-101.61-126.36
UFCF -59.43-102.66-159.58-114.16-114-254.24-274.30-341.13-424.24-527.59
WACC
PV UFCF -235.26-234.87-270.27-311.02-357.91
SUM PV UFCF -1,409.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.07
Free cash flow (t + 1) -538.14
Terminal Value -8,865.59
Present Value of Terminal Value -6,014.26

Intrinsic Value

Enterprise Value -7,423.58
Net Debt 810.95
Equity Value -8,234.53
Shares Outstanding 60.76
Equity Value Per Share -135.53