Discounted Cash Flow (DCF) Analysis Unlevered

Vertex, Inc. (VERX)

$27.82

-0.24 (-0.86%)

All numbers are in Millions, Currency in USD

Stock DCF: -9.20 | 27.82 | overvalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	272.40	321.50	374.66	425.55	491.62	569.88	660.58	765.73	887.61	1,028.89
Revenue (%)
EBITDA	54.76	58.13	-72.54	41.84	53.07	44.96	52.12	60.41	70.03	81.18
EBITDA (%)
EBIT	29.86	32.94	-104.76	-2.94	-8.08	-10.36	-12.01	-13.92	-16.14	-18.70
EBIT (%)
Depreciation	24.90	25.19	32.22	44.78	61.15	55.32	64.13	74.33	86.16	99.88
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	55.84	75.90	303.05	73.33	102.98	185.98	215.58	249.89	289.67	335.77
Total Cash (%)
Account Receivables	62.24	70.37	77.16	76.93	102.88	118.91	137.84	159.78	185.21	214.70
Account Receivables (%)
Inventories	-	-	-	-	14.95	17.32	20.08	23.28	26.98	31.28
Inventories (%)
Accounts Payable	6.86	10.73	8.88	13	14.33	16.18	18.75	21.74	25.20	29.21
Accounts Payable (%)
Capital Expenditure	-33.31	-37.56	-32.81	-45.05	-73.42	-66.32	-76.88	-89.11	-103.30	-119.74
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 27.82
Beta	0.443
Diluted Shares Outstanding	149.65
Cost of Debt
Tax Rate	-21.46
After-tax Cost of Debt	4.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.247
Total Debt	73.52
Total Equity	4,163.12
Total Capital	4,236.64
Debt Weighting	1.74
Equity Weighting	98.26
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	272.40	321.50	374.66	425.55	491.62	569.88	660.58	765.73	887.61	1,028.89
EBITDA	54.76	58.13	-72.54	41.84	53.07	44.96	52.12	60.41	70.03	81.18
EBIT	29.86	32.94	-104.76	-2.94	-8.08	-10.36	-12.01	-13.92	-16.14	-18.70
Tax Rate	-37.93%	25.32%	26.82%	62.33%	-21.46%	11.02%	11.02%	11.02%	11.02%	11.02%
EBIAT	41.18	24.60	-76.66	-1.11	-9.82	-9.22	-10.69	-12.39	-14.36	-16.64
Depreciation	24.90	25.19	32.22	44.78	61.15	55.32	64.13	74.33	86.16	99.88
Accounts Receivable	-	-8.13	-6.79	0.23	-25.96	-16.03	-18.93	-21.94	-25.43	-29.48
Inventories	-	-	-	-	-	-2.38	-2.76	-3.20	-3.71	-4.29
Accounts Payable	-	3.87	-1.85	4.12	1.33	1.85	2.58	2.98	3.46	4.01
Capital Expenditure	-33.31	-37.56	-32.80	-45.05	-73.42	-66.32	-76.88	-89.11	-103.30	-119.74
UFCF	32.77	7.96	-85.90	2.98	-46.71	-36.78	-42.55	-49.32	-57.17	-66.27
WACC
PV UFCF						-34.63	-37.72	-41.16	-44.92	-49.03
SUM PV UFCF										-207.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.21
Free cash flow (t + 1)	-67.59
Terminal Value	-1,605.51
Present Value of Terminal Value	-1,187.92

Intrinsic Value

Enterprise Value	-1,395.37
Net Debt	-18.29
Equity Value	-1,377.09
Shares Outstanding	149.65
Equity Value Per Share	-9.20