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 |