Discounted Cash Flow (DCF) Analysis Unlevered
Software Acquisition Group Inc. III (SWAG)
$9.73
+0.64 (+7.04%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 30.32 | 37.75 | 39.70 | 45.60 | 52.37 | 60.14 | 69.07 | 79.32 |
|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||
| EBITDA | 0.85 | 1.72 | 0.71 | 1.39 | 1.60 | 1.83 | 2.10 | 2.42 |
| EBITDA (%) | ||||||||
| EBIT | 0.67 | 1.50 | 0.26 | 1.04 | 1.20 | 1.37 | 1.58 | 1.81 |
| EBIT (%) | ||||||||
| Depreciation | 0.17 | 0.22 | 0.45 | 0.35 | 0.40 | 0.46 | 0.53 | 0.61 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Total Cash | 2.44 | 0.65 | 32.23 | 13.82 | 15.87 | 18.23 | 20.93 | 24.04 |
|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||
| Account Receivables | 5.26 | 5.68 | 8.98 | 8.36 | 9.60 | 11.03 | 12.66 | 14.54 |
| Account Receivables (%) | ||||||||
| Inventories | 1.95 | 2.50 | 5.23 | 3.98 | 4.58 | 5.25 | 6.03 | 6.93 |
| Inventories (%) | ||||||||
| Accounts Payable | 4.20 | 3.27 | 4.47 | 5.13 | 5.90 | 6.77 | 7.78 | 8.93 |
| Accounts Payable (%) | ||||||||
| Capital Expenditure | -0.12 | -0.18 | -0.39 | -0.28 | -0.32 | -0.37 | -0.42 | -0.49 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 9.73 |
|---|---|
| Beta | 0.000 |
| Diluted Shares Outstanding | 14.34 |
| Cost of Debt | |
| Tax Rate | -84.16 |
| After-tax Cost of Debt | 5.00% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 3.481 |
| Total Debt | - |
| Total Equity | 139.50 |
| Total Capital | 139.50 |
| Debt Weighting | 0.00 |
| Equity Weighting | 100.00 |
| Wacc |
Build Up Free Cash
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 30.32 | 37.75 | 39.70 | 45.60 | 52.37 | 60.14 | 69.07 | 79.32 |
|---|---|---|---|---|---|---|---|---|
| EBITDA | 0.85 | 1.72 | 0.71 | 1.39 | 1.60 | 1.83 | 2.10 | 2.42 |
| EBIT | 0.67 | 1.50 | 0.26 | 1.04 | 1.20 | 1.37 | 1.58 | 1.81 |
| Tax Rate | 30.58% | 29.09% | -84.16% | -8.16% | -8.16% | -8.16% | -8.16% | -8.16% |
| EBIAT | 0.47 | 1.06 | 0.49 | 1.13 | 1.29 | 1.49 | 1.71 | 1.96 |
| Depreciation | 0.17 | 0.22 | 0.45 | 0.35 | 0.40 | 0.46 | 0.53 | 0.61 |
| Accounts Receivable | - | -0.42 | -3.30 | 0.62 | -1.24 | -1.43 | -1.64 | -1.88 |
| Inventories | - | -0.55 | -2.73 | 1.25 | -0.59 | -0.68 | -0.78 | -0.90 |
| Accounts Payable | - | -0.93 | 1.20 | 0.66 | 0.76 | 0.88 | 1.01 | 1.15 |
| Capital Expenditure | -0.12 | -0.18 | -0.39 | -0.28 | -0.32 | -0.37 | -0.42 | -0.49 |
| UFCF | 0.52 | -0.80 | -4.29 | 3.73 | 0.30 | 0.35 | 0.40 | 0.46 |
| WACC | ||||||||
| PV UFCF | 3.86 | 0.30 | 0.34 | 0.37 | 0.41 | |||
| SUM PV UFCF | 4.93 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 3.48 |
| Free cash flow (t + 1) | 0.47 |
| Terminal Value | 31.59 |
| Present Value of Terminal Value | 26.62 |
Intrinsic Value
| Enterprise Value | 31.56 |
|---|---|
| Net Debt | -32.23 |
| Equity Value | 63.78 |
| Shares Outstanding | 14.34 |
| Equity Value Per Share | 4.45 |