Discounted Cash Flow (DCF) Analysis Unlevered
Verint Systems Inc. (VRNT)
$38.71
-0.34 (-0.87%)
All numbers are in Millions, Currency in USD
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 | 1,135.23 | 1,229.75 | 1,303.63 | 1,273.70 | 874.51 | 832.31 | 792.14 | 753.92 | 717.53 | 682.91 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 157.42 | 199.79 | 178.21 | 149.45 | 124.04 | 116.02 | 110.43 | 105.10 | 100.03 | 95.20 |
| EBITDA (%) | ||||||||||
| EBIT | 51.69 | 110.88 | 86.68 | 49.04 | 48.59 | 49.31 | 46.93 | 44.67 | 42.51 | 40.46 |
| EBIT (%) | ||||||||||
| Depreciation | 105.73 | 88.91 | 91.53 | 100.41 | 75.45 | 66.71 | 63.49 | 60.43 | 57.51 | 54.74 |
| 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 | 344.51 | 402.30 | 399.36 | 714.86 | 359.57 | 317.84 | 302.50 | 287.90 | 274.01 | 260.78 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 296.32 | 439.05 | 447.40 | 438.19 | 236.52 | 262.30 | 249.64 | 237.59 | 226.13 | 215.22 |
| Account Receivables (%) | ||||||||||
| Inventories | 19.87 | 24.95 | 20.50 | 20.08 | 5.34 | 12.55 | 11.94 | 11.37 | 10.82 | 10.30 |
| Inventories (%) | ||||||||||
| Accounts Payable | 84.64 | 71.62 | 71.60 | 76.97 | 39.50 | 48.83 | 46.47 | 44.23 | 42.09 | 40.06 |
| 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 | $ 38.71 |
|---|---|
| Beta | 0.933 |
| 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 | 8.042 |
| Total Debt | 463.79 |
| Total Equity | 2,522.85 |
| Total Capital | 2,986.64 |
| Debt Weighting | 15.53 |
| Equity Weighting | 84.47 |
| 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 | 1,135.23 | 1,229.75 | 1,303.63 | 1,273.70 | 874.51 | 832.31 | 792.14 | 753.92 | 717.53 | 682.91 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 157.42 | 199.79 | 178.21 | 149.45 | 124.04 | 116.02 | 110.43 | 105.10 | 100.03 | 95.20 |
| EBIT | 51.69 | 110.88 | 86.68 | 49.04 | 48.59 | 49.31 | 46.93 | 44.67 | 42.51 | 40.46 |
| Tax Rate | 135.06% | 15.14% | 46.19% | 144.79% | 63.52% | 80.94% | 80.94% | 80.94% | 80.94% | 80.94% |
| EBIAT | -18.12 | 94.09 | 46.65 | -21.97 | 17.73 | 9.40 | 8.95 | 8.51 | 8.10 | 7.71 |
| Depreciation | 105.73 | 88.91 | 91.53 | 100.41 | 75.45 | 66.71 | 63.49 | 60.43 | 57.51 | 54.74 |
| Accounts Receivable | - | -142.73 | -8.34 | 9.21 | 201.67 | -25.78 | 12.66 | 12.05 | 11.47 | 10.91 |
| Inventories | - | -5.08 | 4.46 | 0.41 | 14.75 | -7.21 | 0.61 | 0.58 | 0.55 | 0.52 |
| Accounts Payable | - | -13.02 | -0.02 | 5.37 | -37.47 | 9.33 | -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 | -16.82 | 82.02 | 53.11 | 247.60 | 24.89 | 57.12 | 54.36 | 51.74 | 49.24 |
| WACC | ||||||||||
| PV UFCF | 23.28 | 49.96 | 44.47 | 39.59 | 35.24 | |||||
| SUM PV UFCF | 192.54 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.92 |
| Free cash flow (t + 1) | 50.23 |
| Terminal Value | 1,020.84 |
| Present Value of Terminal Value | 730.57 |
Intrinsic Value
| Enterprise Value | 923.11 |
|---|---|
| Net Debt | 104.99 |
| Equity Value | 818.13 |
| Shares Outstanding | 65.17 |
| Equity Value Per Share | 12.55 |