Discounted Cash Flow (DCF) Analysis Unlevered

Vertex, Inc. (VERX)

$13.67

-0.04 (-0.29%)
All numbers are in Millions, Currency in USD
Stock DCF: -14.03 | 13.67 | overvalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 272.40321.50374.66425.55493.84573.08665.04771.76895.61
Revenue (%)
EBITDA 22.5958.13-72.5441.8420.8024.1328.0132.5037.72
EBITDA (%)
EBIT -2.3132.94-104.76-2.94-23.77-27.58-32.01-37.15-43.11
EBIT (%)
Depreciation 24.9025.1932.2244.7844.5751.7260.0269.6580.82
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 55.8475.90303.0598.21182.81212.14246.18285.69331.53
Total Cash (%)
Account Receivables 62.2470.3777.1676.93102.97119.50138.67160.92186.75
Account Receivables (%)
Inventories ---------
Inventories (%)
Accounts Payable 6.8610.738.881313.9316.1618.7521.7625.25
Accounts Payable (%)
Capital Expenditure -33.31-37.56-32.81-45.05-53.40-61.97-71.91-83.45-96.85
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 13.67
Beta 0.370
Diluted Shares Outstanding 131.51
Cost of Debt
Tax Rate 62.33
After-tax Cost of Debt 1.30%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.550
Total Debt 28.61
Total Equity 1,797.76
Total Capital 1,826.36
Debt Weighting 1.57
Equity Weighting 98.43
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
Revenue 272.40321.50374.66425.55493.84573.08665.04771.76895.61
EBITDA 22.5958.13-72.5441.8420.8024.1328.0132.5037.72
EBIT -2.3132.94-104.76-2.94-23.77-27.58-32.01-37.15-43.11
Tax Rate -37.93%25.32%26.82%62.33%19.14%19.14%19.14%19.14%19.14%
EBIAT -3.1824.60-76.66-1.11-19.22-22.31-25.89-30.04-34.86
Depreciation 24.9025.1932.2244.7844.5751.7260.0269.6580.82
Accounts Receivable --8.13-6.790.23-26.04-16.52-19.18-22.25-25.82
Inventories ---------
Accounts Payable -3.87-1.854.120.932.232.593.013.49
Capital Expenditure -33.31-37.56-32.80-45.05-53.40-61.97-71.91-83.45-96.85
UFCF -11.597.96-85.902.98-53.17-46.85-54.36-63.09-73.21
WACC
PV UFCF -53.17-44.41-48.86-53.76-59.14
SUM PV UFCF -245.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.48
Free cash flow (t + 1) -74.68
Terminal Value -2,145.88
Present Value of Terminal Value -1,643.45

Intrinsic Value

Enterprise Value -1,889.32
Net Debt -44.73
Equity Value -1,844.59
Shares Outstanding 131.51
Equity Value Per Share -14.03