Discounted Cash Flow (DCF) Analysis Unlevered

Vonage Holdings Corp. (VG)

$20.99

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 5.08 | 20.99 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,002.291,048.781,189.351,247.931,409.021,535.391,673.091,823.151,986.672,164.85
Revenue (%)
EBITDA 132.97122.4992.9732.9597.07129.87141.52154.21168.04183.11
EBITDA (%)
EBIT 60.6651.596.71-1.438.2936.8840.1943.7947.7252
EBIT (%)
Depreciation 72.3170.9086.2634.3888.7892.99101.33110.42120.32131.12
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 31.365.0623.6243.0818.3431.7834.6437.7441.1344.82
Total Cash (%)
Account Receivables 44.1675.34101.81116.30147.62122.67133.67145.66158.72172.96
Account Receivables (%)
Inventories 2.971.471.482.332.632.873.133.413.714.05
Inventories (%)
Accounts Payable 29.7753.2642.3717.4639.6648.5952.9557.7062.8868.52
Accounts Payable (%)
Capital Expenditure -33.29-26.75-49.08-41.59-46.96-51.17-55.76-60.76-66.21-72.15
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 20.99
Beta 0.596
Diluted Shares Outstanding 246.08
Cost of Debt
Tax Rate -22.11
After-tax Cost of Debt 5.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.466
Total Debt 479.17
Total Equity 5,165.26
Total Capital 5,644.43
Debt Weighting 8.49
Equity Weighting 91.51
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,002.291,048.781,189.351,247.931,409.021,535.391,673.091,823.151,986.672,164.85
EBITDA 132.97122.4992.9732.9597.07129.87141.52154.21168.04183.11
EBIT 60.6651.596.71-1.438.2936.8840.1943.7947.7252
Tax Rate 174.10%2.18%25.38%13.18%-22.11%38.55%38.55%38.55%38.55%38.55%
EBIAT -44.9550.475.01-1.2410.1222.6624.7026.9129.3231.95
Depreciation 72.3170.9086.2634.3888.7892.99101.33110.42120.32131.12
Accounts Receivable --31.18-26.47-14.49-31.3224.95-11-11.99-13.06-14.24
Inventories -1.50-0-0.86-0.30-0.24-0.26-0.28-0.31-0.33
Accounts Payable -23.50-10.90-24.9022.208.934.364.755.185.64
Capital Expenditure -33.29-26.75-49.08-41.59-55.98-51.17-55.76-60.76-66.21-72.15
UFCF -5.9388.444.81-48.7042.5298.1463.3769.0575.2481.99
WACC
PV UFCF 92.2255.9557.2958.6760.07
SUM PV UFCF 324.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.42
Free cash flow (t + 1) 83.63
Terminal Value 1,892.16
Present Value of Terminal Value 1,386.25

Intrinsic Value

Enterprise Value 1,710.45
Net Debt 460.82
Equity Value 1,249.62
Shares Outstanding 246.08
Equity Value Per Share 5.08