DCF Tool

BKI

Black Knight Inc – Software Publishers
Black Knight, Inc. is an award-winning software, data and analytics company that drives innovation in the mortgage lending and servicing and real estate industries, as well as the capital and secondary markets. Businesses leverage its robust, integrated solutions across the entire homeownership life cycle to help retain existing customers, gain new customers, mitigate risk and operate more effectively.
Analysis Results
Intrinsic Value $106.18
Latest Price $60.26
Relative Value 43% 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 10.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.0%, 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 543 512
2023 598 531
2024 658 550
2025 724 571
2026 796 592
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 19700 million. This corresponds to a present value of 13800 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2760 million. Adding in the terminal value gives a total present value of 16600 million.

There are presently 156.0 million outstanding shares, so the intrinsic value per share is 106.18.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 352,100,000
Current Cash 77,100,000
Current Liabilities 264,800,000
Current Debt 32,500,000
Non-Cash Working Capital (NCWC) 42,700,000
Change in NCWC 8,400,000
EBIT 318,900,000
Tax Provision 35,700,000
Depreciation and Amortization 365,000,000
Capital Expenditure -113,600,000
Unlevered Free Cash Flow 525,895,129
Current Assets 287,300,000
Current Cash 34,700,000
Current Liabilities 291,300,000
Current Debt 73,000,000
Non-Cash Working Capital (NCWC) 34,300,000
Change in NCWC -24,100,000
EBIT 365,300,000
Tax Provision 41,600,000
Depreciation and Amortization 270,700,000
Capital Expenditure -113,200,000
Unlevered Free Cash Flow 445,824,286
Current Assets 255,500,000
Current Cash 15,400,000
Current Liabilities 260,800,000
Current Debt 79,100,000
Non-Cash Working Capital (NCWC) 58,400,000
Change in NCWC -900,000
EBIT 221,000,000
Tax Provision 41,900,000
Depreciation and Amortization 236,200,000
Capital Expenditure -103,900,000
Unlevered Free Cash Flow 290,954,080
Current Assets 266,100,000
Current Cash 20,300,000
Current Liabilities 239,000,000
Current Debt 52,500,000
Non-Cash Working Capital (NCWC) 59,300,000
Change in NCWC -28,700,000
EBIT 271,600,000
Tax Provision 37,700,000
Depreciation and Amortization 217,000,000
Capital Expenditure -103,100,000
Unlevered Free Cash Flow 307,142,774
Current Assets 280,700,000
Current Cash 16,200,000
Current Liabilities 231,600,000
Current Debt 55,100,000
Non-Cash Working Capital (NCWC) 88,000,000
Change in NCWC 46,400,000
EBIT 275,600,000
Tax Provision -61,800,000
Depreciation and Amortization 206,500,000
Capital Expenditure -80,700,000
Unlevered Free Cash Flow 447,800,000
Current Assets 339,200,000
Current Cash 133,900,000
Current Liabilities 227,100,000
Current Debt 63,400,000
Non-Cash Working Capital (NCWC) 41,600,000
Change in NCWC 5,600,000
EBIT 235,100,000
Tax Provision 25,800,000
Depreciation and Amortization 208,300,000
Capital Expenditure -80,000,000
Unlevered Free Cash Flow 330,803,652

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