Discounted Cash Flow (DCF) Analysis Unlevered

ServiceSource International, Inc. (SREV)

$1.5

+0.01 (+0.67%)
All numbers are in Millions, Currency in USD
Stock DCF: -0.69 | 1.5 | 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 239.13238.34216.13194.60195.70186.39177.51169.06161.02153.35
Revenue (%)
EBITDA 0.98-0.546.15-4.7210.092.152.051.951.861.77
EBITDA (%)
EBIT -21.61-17.04-17.01-18.64-13.97-15.20-14.48-13.79-13.13-12.51
EBIT (%)
Depreciation 22.5916.4923.1613.9224.0717.3516.5215.7414.9914.27
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 188.5726.5327.0934.0128.5150.1647.7745.5043.3341.27
Total Cash (%)
Account Receivables 56.5254.2841.7538.8943.5740.2538.3336.5134.7733.12
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 4.572.424.391.200.832.242.132.031.931.84
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 10.929
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 239.13238.34216.13194.60195.70186.39177.51169.06161.02153.35
EBITDA 0.98-0.546.15-4.7210.092.152.051.951.861.77
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 22.5916.4923.1613.9224.0717.3516.5215.7414.9914.27
Accounts Receivable -2.2312.532.86-4.683.321.921.821.741.66
Inventories ----------
Accounts Payable --2.151.97-3.19-0.371.41-0.11-0.10-0.10-0.09
Capital Expenditure -17.11-15.60-10.11-7.86-3.93-9.10-8.67-8.26-7.87-7.49
UFCF -15-16.3810.13-13.640.84-2.38-4.96-4.72-4.50-4.28
WACC
PV UFCF -2.19-4.18-3.66-3.20-2.79
SUM PV UFCF -16.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.92
Free cash flow (t + 1) -4.37
Terminal Value -63.15
Present Value of Terminal Value -41.19

Intrinsic Value

Enterprise Value -57.20
Net Debt 9.98
Equity Value -67.18
Shares Outstanding 98.05
Equity Value Per Share -0.69