Discounted Cash Flow (DCF) Analysis Unlevered

Sapiens International Corporation N... (SPNS)

$18.94

-0.75 (-3.81%)
All numbers are in Millions, Currency in USD
Stock DCF: 11.55 | 18.94 | 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 269.19289.71325.67382.90461.03527.90604.46692.13792.51907.45
Revenue (%)
EBITDA 15.3541.9057.0268.5085.8078.3189.67102.68117.57134.62
EBITDA (%)
EBIT -0.5222.0437.8945.1257.1345.6352.2559.8368.5178.44
EBIT (%)
Depreciation 15.8719.8619.1423.3828.6732.6837.4242.8549.0656.18
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 71.4764.6389.19182.56210.24178.98204.94234.66268.70307.66
Total Cash (%)
Account Receivables 59.5165.3858.0484.8090.10110125.95144.22165.13189.08
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 7.046.155.115.395.019.2910.6412.1813.9515.97
Accounts Payable (%)
Capital Expenditure -8.19-7.07-17.14-11.24-11.85-17.16-19.65-22.50-25.76-29.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 18.94
Beta 1.318
Diluted Shares Outstanding 55.59
Cost of Debt
Tax Rate 17.66
After-tax Cost of Debt 4.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.049
Total Debt 148.36
Total Equity 1,052.87
Total Capital 1,201.23
Debt Weighting 12.35
Equity Weighting 87.65
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 269.19289.71325.67382.90461.03527.90604.46692.13792.51907.45
EBITDA 15.3541.9057.0268.5085.8078.3189.67102.68117.57134.62
EBIT -0.5222.0437.8945.1257.1345.6352.2559.8368.5178.44
Tax Rate 117.53%27.57%25.22%18.02%17.66%41.20%41.20%41.20%41.20%41.20%
EBIAT 0.0915.9728.3336.9947.0526.8330.7335.1840.2846.13
Depreciation 15.8719.8619.1423.3828.6732.6837.4242.8549.0656.18
Accounts Receivable --5.887.35-26.76-5.31-19.90-15.95-18.27-20.92-23.95
Inventories ----------
Accounts Payable --0.90-1.040.28-0.384.281.351.541.772.02
Capital Expenditure -8.19-7.07-17.14-11.24-11.85-17.16-19.65-22.50-25.76-29.50
UFCF 7.7721.9836.6322.6558.1826.7433.8938.8144.4450.88
WACC
PV UFCF 24.4628.3629.7031.1132.59
SUM PV UFCF 146.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.32
Free cash flow (t + 1) 51.90
Terminal Value 709
Present Value of Terminal Value 454.09

Intrinsic Value

Enterprise Value 600.32
Net Debt -41.88
Equity Value 642.21
Shares Outstanding 55.59
Equity Value Per Share 11.55