Discounted Cash Flow (DCF) Analysis Unlevered
ServiceSource International, Inc. (SREV)
$1.5
+0.01 (+-%)
All numbers are in Millions, Currency in USD
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 | 239.13 | 238.34 | 216.13 | 194.60 | 195.70 | 186.39 | 177.51 | 169.06 | 161.02 | 153.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 0.98 | -0.54 | 6.15 | -4.72 | 10.09 | 2.15 | 2.05 | 1.95 | 1.86 | 1.77 |
| EBITDA (%) | ||||||||||
| EBIT | -21.61 | -17.04 | -17.01 | -18.64 | -13.97 | -15.20 | -14.48 | -13.79 | -13.13 | -12.51 |
| EBIT (%) | ||||||||||
| Depreciation | 22.59 | 16.49 | 23.16 | 13.92 | 24.07 | 17.35 | 16.52 | 15.74 | 14.99 | 14.27 |
| 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 | 188.57 | 26.53 | 27.09 | 34.01 | 28.51 | 50.16 | 47.77 | 45.50 | 43.33 | 41.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 56.52 | 54.28 | 41.75 | 38.89 | 43.57 | 40.25 | 38.33 | 36.51 | 34.77 | 33.12 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 4.57 | 2.42 | 4.39 | 1.20 | 0.83 | 2.24 | 2.13 | 2.03 | 1.93 | 1.84 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -17.11 | -15.60 | -10.11 | -7.85 | -3.93 | -9.10 | -8.67 | -8.26 | -7.87 | -7.49 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 1.5 |
|---|---|
| Beta | 1.553 |
| Diluted Shares Outstanding | 98.05 |
| Cost of Debt | |
| Tax Rate | -1.92 |
| After-tax Cost of Debt | 1.22% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.710 |
| Total Debt | 38.48 |
| Total Equity | 147.07 |
| Total Capital | 185.56 |
| Debt Weighting | 20.74 |
| Equity Weighting | 79.26 |
| 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 | 239.13 | 238.34 | 216.13 | 194.60 | 195.70 | 186.39 | 177.51 | 169.06 | 161.02 | 153.35 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 0.98 | -0.54 | 6.15 | -4.72 | 10.09 | 2.15 | 2.05 | 1.95 | 1.86 | 1.77 |
| EBIT | -21.61 | -17.04 | -17.01 | -18.64 | -13.97 | -15.20 | -14.48 | -13.79 | -13.13 | -12.51 |
| Tax Rate | 5.23% | -1.84% | -2.43% | -3.98% | -1.92% | -0.99% | -0.99% | -0.99% | -0.99% | -0.99% |
| EBIAT | -20.48 | -17.35 | -17.43 | -19.38 | -14.24 | -15.35 | -14.62 | -13.92 | -13.26 | -12.63 |
| Depreciation | 22.59 | 16.49 | 23.16 | 13.92 | 24.07 | 17.35 | 16.52 | 15.74 | 14.99 | 14.27 |
| Accounts Receivable | - | 2.23 | 12.53 | 2.86 | -4.68 | 3.32 | 1.92 | 1.82 | 1.74 | 1.66 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -2.15 | 1.97 | -3.19 | -0.37 | 1.41 | -0.11 | -0.10 | -0.10 | -0.09 |
| Capital Expenditure | -17.11 | -15.60 | -10.11 | -7.86 | -3.93 | -9.10 | -8.67 | -8.26 | -7.87 | -7.49 |
| UFCF | -15 | -16.38 | 10.13 | -13.64 | 0.84 | -2.38 | -4.96 | -4.72 | -4.50 | -4.28 |
| WACC | ||||||||||
| PV UFCF | -2.19 | -4.19 | -3.67 | -3.22 | -2.82 | |||||
| SUM PV UFCF | -16.09 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.74 |
| Free cash flow (t + 1) | -4.37 |
| Terminal Value | -64.83 |
| Present Value of Terminal Value | -42.64 |
Intrinsic Value
| Enterprise Value | -58.73 |
|---|---|
| Net Debt | 9.98 |
| Equity Value | -68.71 |
| Shares Outstanding | 98.05 |
| Equity Value Per Share | -0.70 |