Discounted Cash Flow (DCF) Analysis Unlevered

Verint Systems Inc. (VRNT)

$39.87

+0.54 (+1.37%)
All numbers are in Millions, Currency in USD
Stock DCF: 13.19 | 39.87 | 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 1,135.231,229.751,303.631,273.70874.51832.31792.14753.92717.53682.91
Revenue (%)
EBITDA 157.42199.79178.21149.45124.04116.02110.43105.10100.0395.20
EBITDA (%)
EBIT 51.69110.8886.6849.0448.5949.3146.9344.6742.5140.46
EBIT (%)
Depreciation 105.7388.9191.53100.4175.4566.7163.4960.4357.5154.74
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 344.51402.30399.36714.86359.57317.84302.50287.90274.01260.78
Total Cash (%)
Account Receivables 296.32439.05447.40438.19236.52262.30249.64237.59226.13215.22
Account Receivables (%)
Inventories 19.8724.9520.5020.085.3412.5511.9411.3710.8210.30
Inventories (%)
Accounts Payable 84.6471.6271.6076.9739.5048.8346.4744.2342.0940.06
Accounts Payable (%)
Capital Expenditure -38.66-39.01-52.25-40.32-24.52-27.56-26.23-24.96-23.76-22.61
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 39.87
Beta 0.896
Diluted Shares Outstanding 65.17
Cost of Debt
Tax Rate 63.52
After-tax Cost of Debt 0.81%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.758
Total Debt 463.79
Total Equity 2,598.45
Total Capital 3,062.24
Debt Weighting 15.15
Equity Weighting 84.85
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 1,135.231,229.751,303.631,273.70874.51832.31792.14753.92717.53682.91
EBITDA 157.42199.79178.21149.45124.04116.02110.43105.10100.0395.20
EBIT 51.69110.8886.6849.0448.5949.3146.9344.6742.5140.46
Tax Rate 135.06%15.14%46.19%144.79%63.52%80.94%80.94%80.94%80.94%80.94%
EBIAT -18.1294.0946.65-21.9717.739.408.958.518.107.71
Depreciation 105.7388.9191.53100.4175.4566.7163.4960.4357.5154.74
Accounts Receivable --142.73-8.349.21201.67-25.7812.6612.0511.4710.91
Inventories --5.084.460.4114.75-7.210.610.580.550.52
Accounts Payable --13.02-0.025.37-37.479.33-2.36-2.24-2.13-2.03
Capital Expenditure -38.66-39.01-52.25-40.32-24.52-27.56-26.23-24.96-23.76-22.61
UFCF 48.95-16.8282.0253.11247.6024.8957.1254.3651.7449.24
WACC
PV UFCF 23.3250.1644.7439.9035.59
SUM PV UFCF 193.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.71
Free cash flow (t + 1) 50.23
Terminal Value 1,066.36
Present Value of Terminal Value 770.68

Intrinsic Value

Enterprise Value 964.39
Net Debt 104.99
Equity Value 859.40
Shares Outstanding 65.17
Equity Value Per Share 13.19