DCF Tool


Cogent Communications Holdings Inc – All Other Telecommunications
cogent is one of the world's largest internet service providers, delivering high quality internet, ethernet and colocation services to more than 61,820 enterprise and netcentric customer connections. cogent serves over 198 markets in 41 countries across its facilities-based, all-optical ip network.
Analysis Results
Intrinsic Value $125.06
Latest Price $65.45
Relative Value 48% undervalued
Thoughts on this result? Let us know.
Cash Flow (Millions)
Analysis Parameters
New Ticker
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 11.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.7%, 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)
2023 138 134
2024 155 145
2025 173 156
2026 193 169
2027 215 182
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 6460 million. This corresponds to a present value of 5290 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 786 million. Adding in the terminal value gives a total present value of 6080 million.

There are presently 48.6 million outstanding shares, so the intrinsic value per share is 125.06.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 365,913,000
Current Cash 223,783,000
Current Liabilities 120,284,000
Current Debt 17,182,000
Non-Cash Working Capital (NCWC) 39,028,000
Change in NCWC 13,022,000
EBIT 116,207,000
Tax Provision 21,230,000
Depreciation and Amortization 92,222,000
Capital Expenditure -78,971,000
Unlevered Free Cash Flow 48,945,172
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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.