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Digital Turbine Inc – Lessors of Nonfinancial Intangible Assets (except Copyrighted Works)
Digital Turbine simplifies content discovery and delivers relevant content directly to consumer devices. The Company's on-demand media platform powers frictionless app and content discovery, user acquisition and engagement, operational efficiency and monetization opportunities. Digital Turbine's technology platform has been adopted by more than 40 mobile operators and OEMs worldwide, and has delivered more than three billion app preloads for tens of thousands of advertising campaigns. The Company is headquartered in Austin, Texas, with global offices in Arlington, Durham, Mumbai, San Francisco, Singapore and Tel Aviv.
Analysis Results
Intrinsic Value $18.44
Latest Price $16.37
Relative Value 11% undervalued
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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 51.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 16.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 51.4%, 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)
2023 79.1 68.1
2024 120 88.7
2025 181 116
2026 275 150
2027 416 196
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2980 million. This corresponds to a present value of 1210 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 619 million. Adding in the terminal value gives a total present value of 1830 million.

There are presently 99.0 million outstanding shares, so the intrinsic value per share is 18.44.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 410,871,000
Current Cash 126,768,000
Current Liabilities 385,263,000
Current Debt 12,500,000
Non-Cash Working Capital (NCWC) -88,660,000
Change in NCWC -58,675,000
EBIT 92,241,000
Tax Provision 8,403,000
Depreciation and Amortization 57,452,000
Capital Expenditure -23,280,000
Unlevered Free Cash Flow 50,110,848
Current Assets 97,385,000
Current Cash 30,778,000
Current Liabilities 111,149,000
Current Debt 14,557,000
Non-Cash Working Capital (NCWC) -29,985,000
Change in NCWC 14,723,000
EBIT 59,209,000
Tax Provision -13,027,000
Depreciation and Amortization 7,114,000
Capital Expenditure -9,204,000
Unlevered Free Cash Flow 71,842,000
Current Assets 58,447,000
Current Cash 21,534,000
Current Liabilities 82,809,000
Current Debt 1,188,000
Non-Cash Working Capital (NCWC) -44,708,000
Change in NCWC -32,629,000
EBIT 13,212,000
Tax Provision -10,375,000
Depreciation and Amortization 2,342,000
Capital Expenditure -4,845,000
Unlevered Free Cash Flow -21,920,000
Current Assets 37,123,000
Current Cash 10,894,000
Current Liabilities 38,308,000
Current Debt 0
Non-Cash Working Capital (NCWC) -12,079,000
Change in NCWC 5,847,000
EBIT 3,445,000
Tax Provision 469,000
Depreciation and Amortization 2,766,000
Capital Expenditure -2,314,000
Unlevered Free Cash Flow 9,744,000
Current Assets 39,755,000
Current Cash 12,720,000
Current Liabilities 46,406,000
Current Debt 1,445,000
Non-Cash Working Capital (NCWC) -17,926,000
Change in NCWC -4,668,000
EBIT -5,809,000
Tax Provision -951,000
Depreciation and Amortization 2,660,000
Capital Expenditure -1,992,000
Unlevered Free Cash Flow -9,809,000
Current Assets 23,665,000
Current Cash 6,149,000
Current Liabilities 30,774,000
Current Debt 0
Non-Cash Working Capital (NCWC) -13,258,000
Change in NCWC -3,279,000
EBIT -22,020,000
Tax Provision -144,000
Depreciation and Amortization 8,170,000
Capital Expenditure -1,595,000
Unlevered Free Cash Flow -18,724,000
Current Assets 29,674,000
Current Cash 11,231,000
Current Liabilities 38,982,000
Current Debt 10,560,000
Non-Cash Working Capital (NCWC) -9,979,000
Change in NCWC -2,750,000
EBIT -25,936,000
Tax Provision 214,000
Depreciation and Amortization 10,974,000
Capital Expenditure -1,549,000
Unlevered Free Cash Flow -19,261,000

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