Discounted Cash Flow (DCF) Analysis Unlevered

TechTarget, Inc. (TTGT)

$69.62

+0.30 (+0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 26.71 | 69.62 | overvalue

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 121.33133.96148.38263.43350.10465.30618.39821.861,092.271,451.66
Revenue (%)
EBITDA 21.1727.7429.4431.5361.2481.39108.16143.75191.05253.91
EBITDA (%)
EBIT 16.6222.7422.5011.0843.8058.2277.37102.83136.66181.63
EBIT (%)
Depreciation 4.5556.9420.4517.4323.1730.7940.9354.3972.29
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 35.1757.5082.70381.700.39253.73337.22448.17595.64791.62
Total Cash (%)
Account Receivables 30.0427.1040.1851.090.0685.14113.15150.38199.86265.62
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1.872.044.303.780.016.899.1512.1616.1721.49
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 121.33133.96148.38263.43350.10465.30618.39821.861,092.271,451.66
EBITDA 21.1727.7429.4431.5361.2481.39108.16143.75191.05253.91
EBIT 16.6222.7422.5011.0843.8058.2277.37102.83136.66181.63
Tax Rate 12.72%23.46%24.16%91.43%37.94%37.94%37.94%37.94%37.94%37.94%
EBIAT 14.5117.4017.070.9527.1836.1348.0163.8184.81112.71
Depreciation 4.5556.9420.4517.4323.1730.7940.9354.3972.29
Accounts Receivable -2.94-13.08-10.9151.03-85.08-28.01-37.23-49.48-65.76
Inventories ----------
Accounts Payable -0.172.27-0.52-3.786.882.273.0145.32
Capital Expenditure -5.54-6.33-6.66-12.63-16.26-21.61-28.72-38.17-50.73-67.42
UFCF 13.5219.176.53-2.6675.62-40.5124.3432.3542.9957.14
WACC
PV UFCF 75.62-37.5720.9325.8031.8039.20
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