DCF Tool

EBIX

Ebix Inc. – Computer Systems Design Services
With a 'Phygital' strategy that combines 320,000 physical distribution outlets in many Southeast Asian Nations ('ASEAN') countries, to an Omni-channel online digital platform, the Company's EbixCash Financial exchange portfolio encompasses leadership in areas of domestic & international money remittance, foreign exchange (Forex), travel, pre-paid & gift cards, utility payments, lending, wealth management etc. in India and other markets. EbixCash's Forex operations have emerged as a leader in India's airport Foreign Exchange business with operations in 32 international airports including Delhi, Mumbai, Bangalore, Hyderabad, Chennai and Kolkata, conducting over $4.8 billion in gross transaction value per year. EbixCash's inward remittance business in India conducts approx. $6.5 billion gross annual remittance business, confirming its undisputed leadership position in India. EbixCash, through its travel portfolio of Via and Mercury, is also one of Southeast Asia's leading travel exchanges with over 2,200+ employees, 212,450+ agent network, 25 branches and over 9,800 corporate clients; processing an estimated $2.5 billion in gross merchandise value per year. EbixCash's Financial Technology solutions are today deployed across prestigious financial institutions and Banks in 44 countries.
Analysis Results
Intrinsic Value $50.11
Latest Price $29.16
Relative Value 42% 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 6.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.1%, 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 131 118
2023 139 113
2024 148 108
2025 157 103
2026 166 98.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1880 million. This corresponds to a present value of 1010 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 541 million. Adding in the terminal value gives a total present value of 1550 million.

There are presently 30.9 million outstanding shares, so the intrinsic value per share is 50.11.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 366,564,000
Current Cash 116,088,000
Current Liabilities 205,195,000
Current Debt 36,138,000
Non-Cash Working Capital (NCWC) 81,419,000
Change in NCWC -193,000
EBIT 119,010,000
Tax Provision 6,584,000
Depreciation and Amortization 22,789,000
Capital Expenditure -13,165,000
Unlevered Free Cash Flow 117,783,629
Current Assets 361,898,000
Current Cash 130,054,000
Current Liabilities 191,390,000
Current Debt 41,158,000
Non-Cash Working Capital (NCWC) 81,612,000
Change in NCWC -21,376,000
EBIT 131,970,000
Tax Provision 5,330,000
Depreciation and Amortization 19,838,000
Capital Expenditure -9,566,000
Unlevered Free Cash Flow 113,395,497
Current Assets 363,934,000
Current Cash 77,671,000
Current Liabilities 234,885,000
Current Debt 51,610,000
Non-Cash Working Capital (NCWC) 102,988,000
Change in NCWC 135,560,000
EBIT 155,673,000
Tax Provision 220,000
Depreciation and Amortization 14,468,000
Capital Expenditure -12,897,000
Unlevered Free Cash Flow 292,426,781
Current Assets 427,380,000
Current Cash 178,958,000
Current Liabilities 317,428,000
Current Debt 36,434,000
Non-Cash Working Capital (NCWC) -32,572,000
Change in NCWC -72,709,000
EBIT 152,979,000
Tax Provision 32,501,000
Depreciation and Amortization 11,292,000
Capital Expenditure -16,111,000
Unlevered Free Cash Flow 35,859,573
Current Assets 252,932,000
Current Cash 89,487,000
Current Liabilities 146,932,000
Current Debt 23,624,000
Non-Cash Working Capital (NCWC) 40,137,000
Change in NCWC 24,830,000
EBIT 113,221,000
Tax Provision 777,000
Depreciation and Amortization 11,123,000
Capital Expenditure -10,190,000
Unlevered Free Cash Flow 138,132,870
Current Assets 209,869,000
Current Cash 117,223,000
Current Liabilities 89,712,000
Current Debt 12,373,000
Non-Cash Working Capital (NCWC) 15,307,000
Change in NCWC 7,854,000
EBIT 100,281,000
Tax Provision 1,637,000
Depreciation and Amortization 10,746,000
Capital Expenditure -9,965,000
Unlevered Free Cash Flow 107,204,770
Current Assets 116,830,000
Current Cash 58,717,000
Current Liabilities 51,266,000
Current Debt 606,000
Non-Cash Working Capital (NCWC) 7,453,000
Change in NCWC 25,023,000
EBIT 88,714,000
Tax Provision 7,106,000
Depreciation and Amortization 10,634,000
Capital Expenditure -17,483,000
Unlevered Free Cash Flow 99,611,811
Current Assets 103,861,000
Current Cash 52,581,000
Current Liabilities 69,786,000
Current Debt 936,000
Non-Cash Working Capital (NCWC) -17,570,000
Change in NCWC -9,658,000
EBIT 79,672,000
Tax Provision 13,894,000
Depreciation and Amortization 9,681,000
Capital Expenditure -16,277,000
Unlevered Free Cash Flow 49,125,757
Current Assets 102,349,000
Current Cash 57,475,000
Current Liabilities 66,675,000
Current Debt 13,889,000
Non-Cash Working Capital (NCWC) -7,912,000
Change in NCWC -7,730,000
EBIT 75,006,000
Tax Provision 10,878,000
Depreciation and Amortization 10,107,000
Capital Expenditure -1,230,000
Unlevered Free Cash Flow 64,522,322
Current Assets 81,669,000
Current Cash 37,420,000
Current Liabilities 56,690,000
Current Debt 12,259,000
Non-Cash Working Capital (NCWC) -182,000
Change in NCWC 4,149,000
EBIT 77,008,000
Tax Provision 7,460,000
Depreciation and Amortization 9,155,000
Capital Expenditure -1,965,000
Unlevered Free Cash Flow 80,984,613
Current Assets 63,817,000
Current Cash 25,201,000
Current Liabilities 49,779,000
Current Debt 6,832,000
Non-Cash Working Capital (NCWC) -4,331,000
Change in NCWC -6,701,000
EBIT 68,748,000
Tax Provision 2,117,000
Depreciation and Amortization 7,514,000
Capital Expenditure -2,829,000
Unlevered Free Cash Flow 64,751,735

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