Discounted Cash Flow (DCF) Analysis Unlevered

Rapid7, Inc. (RPD)

$45.81

-0.68 (-1.46%)
All numbers are in Millions, Currency in USD
Stock DCF: -143.02 | 45.81 | 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 200.94244.09326.95411.49535.40684.50875.121,118.821,430.391,828.72
Revenue (%)
EBITDA -40.08-39.05-23.89-50.10-88.12-98.41-125.81-160.84-205.64-262.90
EBITDA (%)
EBIT -47.71-50.14-40.41-72.73-121.62-132.84-169.84-217.13-277.60-354.90
EBIT (%)
Depreciation 7.6311.1016.5322.6333.5034.4444.0356.2971.9692
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 90.74258.78239.57312.46223.43468.36598.78765.53978.711,251.26
Total Cash (%)
Account Receivables 73.6674.9387.93111.60146.09203.51260.19332.65425.28543.71
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 2.247.056.843.863.5210.5313.4617.202228.12
Accounts Payable (%)
Capital Expenditure -5.99-16.08-35.52-19.93-18.86-39.42-50.40-64.43-82.38-105.32
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 45.81
Beta 1.300
Diluted Shares Outstanding 55.98
Cost of Debt
Tax Rate -7.67
After-tax Cost of Debt 1.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.835
Total Debt 912.56
Total Equity 2,564.29
Total Capital 3,476.85
Debt Weighting 26.25
Equity Weighting 73.75
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 200.94244.09326.95411.49535.40684.50875.121,118.821,430.391,828.72
EBITDA -40.08-39.05-23.89-50.10-88.12-98.41-125.81-160.84-205.64-262.90
EBIT -47.71-50.14-40.41-72.73-121.62-132.84-169.84-217.13-277.60-354.90
Tax Rate 4.69%-0.85%-0.08%-2.05%-7.67%-1.19%-1.19%-1.19%-1.19%-1.19%
EBIAT -45.47-50.57-40.45-74.22-130.95-134.42-171.86-219.72-280.90-359.13
Depreciation 7.6311.1016.5322.6333.5034.4444.0356.2971.9692
Accounts Receivable --1.27-12.99-23.67-34.49-57.42-56.67-72.46-92.63-118.43
Inventories ----------
Accounts Payable -4.81-0.21-2.98-0.3472.933.754.796.13
Capital Expenditure -5.99-16.08-35.52-19.93-18.86-39.42-50.40-64.43-82.38-105.32
UFCF -43.83-52.02-72.64-98.17-151.14-189.82-231.97-296.57-379.16-484.75
WACC
PV UFCF -176.30-200.10-237.60-282.13-335
SUM PV UFCF -1,231.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.67
Free cash flow (t + 1) -494.45
Terminal Value -8,720.41
Present Value of Terminal Value -6,026.48

Intrinsic Value

Enterprise Value -7,257.61
Net Debt 747.98
Equity Value -8,005.59
Shares Outstanding 55.98
Equity Value Per Share -143.02