Discounted Cash Flow (DCF) Analysis Unlevered
TechTarget, Inc. (TTGT)
$69.62
+0.30 (+0.43%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 121.33 | 133.96 | 148.38 | 263.43 | 350.10 | 465.30 | 618.39 | 821.86 | 1,092.27 | 1,451.66 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 21.17 | 27.74 | 29.44 | 31.53 | 61.24 | 81.39 | 108.16 | 143.75 | 191.05 | 253.91 |
| EBITDA (%) | ||||||||||
| EBIT | 16.62 | 22.74 | 22.50 | 11.08 | 43.80 | 58.22 | 77.37 | 102.83 | 136.66 | 181.63 |
| EBIT (%) | ||||||||||
| Depreciation | 4.55 | 5 | 6.94 | 20.45 | 17.43 | 23.17 | 30.79 | 40.93 | 54.39 | 72.29 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 35.17 | 57.50 | 82.70 | 381.70 | 0.39 | 253.73 | 337.22 | 448.17 | 595.64 | 791.62 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 30.04 | 27.10 | 40.18 | 51.09 | 0.06 | 85.14 | 113.15 | 150.38 | 199.86 | 265.62 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 1.87 | 2.04 | 4.30 | 3.78 | 0.01 | 6.89 | 9.15 | 12.16 | 16.17 | 21.49 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -5.54 | -6.34 | -6.66 | -12.63 | -16.26 | -21.61 | -28.72 | -38.17 | -50.73 | -67.42 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 69.62 |
|---|---|
| Beta | 1.058 |
| Diluted Shares Outstanding | 28.68 |
| Cost of Debt | |
| Tax Rate | 91.43 |
| After-tax Cost of Debt | 0.43% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.833 |
| Total Debt | 0.48 |
| Total Equity | 1,996.35 |
| Total Capital | 1,996.83 |
| Debt Weighting | 0.02 |
| Equity Weighting | 99.98 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 121.33 | 133.96 | 148.38 | 263.43 | 350.10 | 465.30 | 618.39 | 821.86 | 1,092.27 | 1,451.66 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 21.17 | 27.74 | 29.44 | 31.53 | 61.24 | 81.39 | 108.16 | 143.75 | 191.05 | 253.91 |
| EBIT | 16.62 | 22.74 | 22.50 | 11.08 | 43.80 | 58.22 | 77.37 | 102.83 | 136.66 | 181.63 |
| Tax Rate | 12.72% | 23.46% | 24.16% | 91.43% | 37.94% | 37.94% | 37.94% | 37.94% | 37.94% | 37.94% |
| EBIAT | 14.51 | 17.40 | 17.07 | 0.95 | 27.18 | 36.13 | 48.01 | 63.81 | 84.81 | 112.71 |
| Depreciation | 4.55 | 5 | 6.94 | 20.45 | 17.43 | 23.17 | 30.79 | 40.93 | 54.39 | 72.29 |
| Accounts Receivable | - | 2.94 | -13.08 | -10.91 | 51.03 | -85.08 | -28.01 | -37.23 | -49.48 | -65.76 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 0.17 | 2.27 | -0.52 | -3.78 | 6.88 | 2.27 | 3.01 | 4 | 5.32 |
| Capital Expenditure | -5.54 | -6.33 | -6.66 | -12.63 | -16.26 | -21.61 | -28.72 | -38.17 | -50.73 | -67.42 |
| UFCF | 13.52 | 19.17 | 6.53 | -2.66 | 75.62 | -40.51 | 24.34 | 32.35 | 42.99 | 57.14 |
| WACC | ||||||||||
| PV UFCF | 75.62 | -37.57 | 20.93 | 25.80 | 31.80 | 39.20 | ||||
| SUM PV UFCF | 80.17 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.83 |
| Free cash flow (t + 1) | 58.28 |
| Terminal Value | 999.71 |
| Present Value of Terminal Value | 685.76 |
Intrinsic Value
| Enterprise Value | 765.93 |
|---|---|
| Net Debt | 0.11 |
| Equity Value | 765.82 |
| Shares Outstanding | 28.68 |
| Equity Value Per Share | 26.71 |