DCF Tool

CSGS

CSG Systems International Inc. – Data Processing, Hosting, and Related Services
For more than 35 years, CSG has simplified the complexity of business, delivering innovative customer engagement solutions that help companies acquire, monetize, engage, and retain customers. Operating across more than 120 countries worldwide, CSG manages billions of critical customer interactions annually, and its award-winning suite of software and services allow companies across dozens of industries to tackle their biggest business challenges and thrive in an ever-changing marketplace. CSG is the trusted provider for driving digital innovation for hundreds of leading global brands, including Airtel Africa, América Móvil, AT&T, Charter Communications, Comcast, DISH, Formula 1, Hutchison 3 Indonesia, Inmarsat, Mastercard, Maximus, Microsoft, Mobily, MTN, New Leaf Service Contracts, State of California DMV, TalkTalk and Telstra.
Analysis Results
Intrinsic Value $110.98
Latest Price $52.88
Relative Value 52% 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 5.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.0%, 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 134 126
2023 140 125
2024 148 124
2025 155 123
2026 163 122
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4170 million. This corresponds to a present value of 2940 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 620 million. Adding in the terminal value gives a total present value of 3560 million.

There are presently 32.1 million outstanding shares, so the intrinsic value per share is 110.98.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 748,199,000
Current Cash 233,672,000
Current Liabilities 695,102,000
Current Debt 237,500,000
Non-Cash Working Capital (NCWC) 56,925,000
Change in NCWC 4,829,000
EBIT 129,056,000
Tax Provision 28,615,000
Depreciation and Amortization 72,801,000
Capital Expenditure -26,562,000
Unlevered Free Cash Flow 143,540,703
Current Assets 698,345,000
Current Cash 240,297,000
Current Liabilities 420,015,000
Current Debt 14,063,000
Non-Cash Working Capital (NCWC) 52,096,000
Change in NCWC -25,949,000
EBIT 110,884,000
Tax Provision 26,645,000
Depreciation and Amortization 66,873,000
Capital Expenditure -29,397,000
Unlevered Free Cash Flow 87,797,098
Current Assets 669,082,000
Current Cash 182,657,000
Current Liabilities 418,693,000
Current Debt 10,313,000
Non-Cash Working Capital (NCWC) 78,045,000
Change in NCWC -15,751,000
EBIT 130,943,000
Tax Provision 22,953,000
Depreciation and Amortization 67,122,000
Capital Expenditure -37,319,000
Unlevered Free Cash Flow 116,566,609
Current Assets 599,567,000
Current Cash 162,880,000
Current Liabilities 350,391,000
Current Debt 7,500,000
Non-Cash Working Capital (NCWC) 93,796,000
Change in NCWC 983,000
EBIT 113,593,000
Tax Provision 20,857,000
Depreciation and Amortization 62,632,000
Capital Expenditure -57,104,000
Unlevered Free Cash Flow 92,867,640
Current Assets 554,266,000
Current Cash 261,360,000
Current Liabilities 222,593,000
Current Debt 22,500,000
Non-Cash Working Capital (NCWC) 92,813,000
Change in NCWC 11,976,000
EBIT 114,481,000
Tax Provision 26,346,000
Depreciation and Amortization 42,881,000
Capital Expenditure -28,942,000
Unlevered Free Cash Flow 106,008,627
Current Assets 559,938,000
Current Cash 276,498,000
Current Liabilities 252,029,000
Current Debt 49,426,000
Non-Cash Working Capital (NCWC) 80,837,000
Change in NCWC 14,089,000
EBIT 133,045,000
Tax Provision 37,117,000
Depreciation and Amortization 41,242,000
Capital Expenditure -14,263,000
Unlevered Free Cash Flow 124,730,193
Current Assets 518,226,000
Current Cash 240,936,000
Current Liabilities 360,119,000
Current Debt 149,577,000
Non-Cash Working Capital (NCWC) 66,748,000
Change in NCWC -20,938,000
EBIT 116,214,000
Tax Provision 33,774,000
Depreciation and Amortization 44,057,000
Capital Expenditure -18,845,000
Unlevered Free Cash Flow 79,747,176
Current Assets 478,133,000
Current Cash 201,800,000
Current Liabilities 211,147,000
Current Debt 22,500,000
Non-Cash Working Capital (NCWC) 87,686,000
Change in NCWC 14,954,000
EBIT 89,659,000
Tax Provision 24,563,000
Depreciation and Amortization 47,637,000
Capital Expenditure -25,985,000
Unlevered Free Cash Flow 90,468,146
Current Assets 475,375,000
Current Cash 210,837,000
Current Liabilities 206,806,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) 72,732,000
Change in NCWC -2,150,000
EBIT 89,109,000
Tax Provision 10,168,000
Depreciation and Amortization 56,452,000
Capital Expenditure -37,168,000
Unlevered Free Cash Flow 91,514,862
Current Assets 440,935,000
Current Cash 169,321,000
Current Liabilities 211,732,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) 74,882,000
Change in NCWC -5,863,000
EBIT 99,043,000
Tax Provision 28,345,000
Depreciation and Amortization 66,464,000
Capital Expenditure -37,850,000
Unlevered Free Cash Flow 85,440,355

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