DCF Tool

ALTR

Altair Engineering Inc – Software Publishers
Altair is a global technology company that provides software and cloud solutions in the areas of simulation, high-performance computing (HPC), and artificial intelligence (AI). Altair enables organizations across broad industry segments to compete more effectively in a connected world while creating a more sustainable future.
Analysis Results
Intrinsic Value $0.05
Latest Price $44.22
Relative Value 90241% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -64.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -64.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 1.71 1.57
2023 0.618 0.515
2024 0.223 0.17
2025 0.0802 0.0559
2026 0.0289 0.0184
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 0.395 million. This corresponds to a present value of 0.23 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.33 million. Adding in the terminal value gives a total present value of 2.56 million.

There are presently 52.2 million outstanding shares, so the intrinsic value per share is 0.05.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 588,221,000
Current Cash 413,743,000
Current Liabilities 473,978,000
Current Debt 199,705,000
Non-Cash Working Capital (NCWC) -99,795,000
Change in NCWC -75,139,000
EBIT 12,339,000
Tax Provision 8,506,000
Depreciation and Amortization 25,644,000
Capital Expenditure -8,193,000
Unlevered Free Cash Flow -45,349,000
Current Assets 386,935,000
Current Cash 241,221,000
Current Liabilities 200,754,000
Current Debt 30,384,000
Non-Cash Working Capital (NCWC) -24,656,000
Change in NCWC -1,560,000
EBIT 11,713,000
Tax Provision 12,532,000
Depreciation and Amortization 23,806,000
Capital Expenditure -8,226,000
Unlevered Free Cash Flow 13,201,000
Current Assets 352,457,000
Current Cash 223,117,000
Current Liabilities 152,866,000
Current Debt 430,000
Non-Cash Working Capital (NCWC) -23,096,000
Change in NCWC -14,358,000
EBIT 8,207,000
Tax Provision 10,930,000
Depreciation and Amortization 21,522,000
Capital Expenditure -10,133,000
Unlevered Free Cash Flow -5,692,000
Current Assets 154,034,000
Current Cash 35,345,000
Current Liabilities 127,758,000
Current Debt 331,000
Non-Cash Working Capital (NCWC) -8,738,000
Change in NCWC 83,818,000
EBIT 24,644,000
Tax Provision 13,309,000
Depreciation and Amortization 14,734,000
Capital Expenditure -9,386,000
Unlevered Free Cash Flow 101,673,121

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