DCF Tool

CCOI

Cogent Communications Holdings Inc – All Other Telecommunications
Cogent (NASDAQ: CCOI) is a facilities-based provider of low cost, high speed Internet access and private network services to bandwidth intensive businesses. Cogent's facilities-based, all-optical IP network provides services in over 209 markets across 47 countries.
Analysis Results
Intrinsic Value $89.74
Latest Price $57.51
Relative Value 36% 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 13.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.7%, 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 133 125
2023 151 134
2024 172 143
2025 196 153
2026 223 163
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5200 million. This corresponds to a present value of 3590 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 718 million. Adding in the terminal value gives a total present value of 4310 million.

There are presently 48.0 million outstanding shares, so the intrinsic value per share is 89.74.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 409,577,000
Current Cash 319,609,000
Current Liabilities 81,010,000
Current Debt 17,048,000
Non-Cash Working Capital (NCWC) 26,006,000
Change in NCWC 19,711,000
EBIT 111,840,000
Tax Provision 23,235,000
Depreciation and Amortization 89,240,000
Capital Expenditure -69,916,000
Unlevered Free Cash Flow 114,490,200
Current Assets 456,337,000
Current Cash 371,301,000
Current Liabilities 94,443,000
Current Debt 15,702,000
Non-Cash Working Capital (NCWC) 6,295,000
Change in NCWC 11,529,000
EBIT 106,993,000
Tax Provision 4,096,000
Depreciation and Amortization 83,477,000
Capital Expenditure -55,952,000
Unlevered Free Cash Flow 103,548,616
Current Assets 475,728,000
Current Cash 399,422,000
Current Liabilities 89,694,000
Current Debt 8,154,000
Non-Cash Working Capital (NCWC) -5,234,000
Change in NCWC -11,245,000
EBIT 99,198,000
Tax Provision 15,154,000
Depreciation and Amortization 80,247,000
Capital Expenditure -46,958,000
Unlevered Free Cash Flow 92,703,318
Current Assets 350,337,000
Current Cash 276,093,000
Current Liabilities 75,307,000
Current Debt 7,074,000
Non-Cash Working Capital (NCWC) 6,011,000
Change in NCWC 14,259,000
EBIT 85,576,000
Tax Provision 12,715,000
Depreciation and Amortization 81,233,000
Capital Expenditure -49,937,000
Unlevered Free Cash Flow 104,836,987
Current Assets 306,118,000
Current Cash 247,011,000
Current Liabilities 74,526,000
Current Debt 7,171,000
Non-Cash Working Capital (NCWC) -8,248,000
Change in NCWC -265,000
EBIT 72,056,000
Tax Provision 25,242,000
Depreciation and Amortization 75,926,000
Capital Expenditure -45,801,000
Unlevered Free Cash Flow 43,466,306
Current Assets 327,623,000
Current Cash 274,319,000
Current Liabilities 67,913,000
Current Debt 6,626,000
Non-Cash Working Capital (NCWC) -7,983,000
Change in NCWC 6,926,000
EBIT 56,890,000
Tax Provision 9,331,000
Depreciation and Amortization 75,235,000
Capital Expenditure -45,234,000
Unlevered Free Cash Flow 71,935,689
Current Assets 251,339,000
Current Cash 203,591,000
Current Liabilities 68,904,000
Current Debt 6,247,000
Non-Cash Working Capital (NCWC) -14,909,000
Change in NCWC -21,322,000
EBIT 46,094,000
Tax Provision 7,816,000
Depreciation and Amortization 70,527,000
Capital Expenditure -35,582,000
Unlevered Free Cash Flow 31,376,006
Current Assets 339,641,000
Current Cash 287,790,000
Current Liabilities 60,032,000
Current Debt 14,594,000
Non-Cash Working Capital (NCWC) 6,413,000
Change in NCWC 2,571,000
EBIT 42,950,000
Tax Provision 3,694,000
Depreciation and Amortization 69,481,000
Capital Expenditure -60,032,000
Unlevered Free Cash Flow 19,642,166
Current Assets 354,271,000
Current Cash 304,866,000
Current Liabilities 143,694,000
Current Debt 98,131,000
Non-Cash Working Capital (NCWC) 3,842,000
Change in NCWC 11,127,000
EBIT 46,154,000
Tax Provision -49,702,000
Depreciation and Amortization 64,358,000
Capital Expenditure -49,031,000
Unlevered Free Cash Flow 72,608,000
Current Assets 281,253,000
Current Cash 247,285,000
Current Liabilities 51,740,000
Current Debt 10,487,000
Non-Cash Working Capital (NCWC) -7,285,000
Change in NCWC -6,222,000
EBIT 30,968,000
Tax Provision 751,000
Depreciation and Amortization 62,478,000
Capital Expenditure -44,337,000
Unlevered Free Cash Flow 42,887,000

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