Discounted Cash Flow (DCF) Analysis Unlevered

Workiva Inc. (WK)

$84.33

+3.77 (+4.68%)
All numbers are in Millions, Currency in USD
Stock DCF: -49.78 | 84.33 | 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 207.87244.34297.89351.59443.29535.90647.86783.21946.831,144.65
Revenue (%)
EBITDA -38.97-44.22-37.47-30.43-19.84-67.04-81.05-97.98-118.46-143.20
EBITDA (%)
EBIT -42.52-48-41.63-34.73-25.08-74.61-90.19-109.04-131.81-159.35
EBIT (%)
Depreciation 3.553.784.164.305.247.569.1411.0513.3616.15
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 76.7098.35487.96530.04530.45548.08662.58801.01968.361,170.67
Total Cash (%)
Account Receivables 29.7766.2962.6668.9280.39107.42129.86156.99189.79229.44
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 3.065.467.062.844.118.3710.1212.2414.7917.89
Accounts Payable (%)
Capital Expenditure -1.38-1.37-3.84-1.87-3.75-4.18-5.05-6.10-7.38-8.92
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 84.33
Beta 1.189
Diluted Shares Outstanding 48.45
Cost of Debt
Tax Rate 3.50
After-tax Cost of Debt 4.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.139
Total Debt 337.74
Total Equity 4,085.63
Total Capital 4,423.37
Debt Weighting 7.64
Equity Weighting 92.36
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 207.87244.34297.89351.59443.29535.90647.86783.21946.831,144.65
EBITDA -38.97-44.22-37.47-30.43-19.84-67.04-81.05-97.98-118.46-143.20
EBIT -42.52-48-41.63-34.73-25.08-74.61-90.19-109.04-131.81-159.35
Tax Rate -0.14%-0.50%-0.29%0.60%3.50%0.64%0.64%0.64%0.64%0.64%
EBIAT -42.58-48.23-41.75-34.52-24.21-74.13-89.62-108.34-130.98-158.34
Depreciation 3.553.784.164.305.247.569.1411.0513.3616.15
Accounts Receivable --36.513.63-6.26-11.46-27.03-22.44-27.13-32.80-39.65
Inventories ----------
Accounts Payable -2.401.60-4.211.274.261.752.112.563.09
Capital Expenditure -1.39-1.37-3.84-1.87-3.75-4.18-5.05-6.10-7.38-8.92
UFCF -40.42-79.94-36.20-42.57-32.91-93.52-106.22-128.41-155.24-187.67
WACC
PV UFCF -86-89.81-99.84-110.99-123.38
SUM PV UFCF -510.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.75
Free cash flow (t + 1) -191.42
Terminal Value -2,835.90
Present Value of Terminal Value -1,864.42

Intrinsic Value

Enterprise Value -2,374.45
Net Debt 37.35
Equity Value -2,411.80
Shares Outstanding 48.45
Equity Value Per Share -49.78