DCF Tool

CASA

Casa Systems Inc – Telephone Apparatus Manufacturing
Casa Systems, Inc. delivers the core-to-customer building blocks to speed 5G transformation with future-proof solutions and cutting-edge bandwidth for all access types. In today's increasingly personalized world, Casa creates disruptive architectures built specifically to meet the needs of service provider networks. Its suite of open, cloud-native network solutions unlocks new ways for service providers to build networks without boundaries and maximize revenue-generating capabilities. Commercially deployed in more than 70 countries, Casa serves over 475 Tier 1 and regional service providers worldwide.
Analysis Results
Intrinsic Value $1.26
Latest Price $4.41
Relative Value 250% 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 -22.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -22.5%, 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 23.9 21.6
2023 18.5 15.2
2024 14.3 10.7
2025 11.1 7.48
2026 8.6 5.25
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 105 million. This corresponds to a present value of 58.2 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 60.2 million. Adding in the terminal value gives a total present value of 118 million.

There are presently 94.2 million outstanding shares, so the intrinsic value per share is 1.26.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 355,014,000
Current Cash 154,703,000
Current Liabilities 90,857,000
Current Debt 1,924,000
Non-Cash Working Capital (NCWC) 111,378,000
Change in NCWC 2,089,000
EBIT 18,255,000
Tax Provision 287,000
Depreciation and Amortization 15,680,000
Capital Expenditure -3,887,000
Unlevered Free Cash Flow 30,637,519
Current Assets 370,734,000
Current Cash 157,455,000
Current Liabilities 119,161,000
Current Debt 15,171,000
Non-Cash Working Capital (NCWC) 109,289,000
Change in NCWC 426,000
EBIT 24,213,000
Tax Provision -15,052,000
Depreciation and Amortization 17,970,000
Capital Expenditure -5,153,000
Unlevered Free Cash Flow 37,456,000
Current Assets 308,443,000
Current Cash 113,638,000
Current Liabilities 94,466,000
Current Debt 8,524,000
Non-Cash Working Capital (NCWC) 108,863,000
Change in NCWC 58,871,000
EBIT -9,119,000
Tax Provision 23,791,000
Depreciation and Amortization 14,722,000
Capital Expenditure -8,591,000
Unlevered Free Cash Flow 55,883,000
Current Assets 417,511,000
Current Cash 280,587,000
Current Liabilities 89,111,000
Current Debt 2,179,000
Non-Cash Working Capital (NCWC) 49,992,000
Change in NCWC -16,054,000
EBIT 78,966,000
Tax Provision -7,068,000
Depreciation and Amortization 9,454,000
Capital Expenditure -7,966,000
Unlevered Free Cash Flow 64,400,000

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