DCF Tool

HLNE

Hamilton Lane Inc – Securities and Commodity Exchanges
Hamilton Lane (NASDAQ: HLNE) is a leading private markets investment management firm providing innovative solutions to sophisticated investors around the world. Dedicated exclusively to private markets investing for 29 years, the firm currently employs more than 400 professionals operating in offices throughout North America, Europe, Asia Pacific and the Middle East. Hamilton Lane has approximately $547 billion in assets under management and supervision, composed of approximately $73 billion in discretionary assets and over $474 billion in advisory assets, as of September 30, 2020. Hamilton Lane specializes in building flexible investment programs that provide clients access to the full spectrum of private markets strategies, sectors and geographies.
Analysis Results
Intrinsic Value $436.85
Latest Price $69.07
Relative Value 84% undervalued
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Cash Flow (Billions)
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 43.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 43.5%, 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 (billion) Present value (billion)
2023 0.43 0.39
2024 0.617 0.509
2025 0.885 0.664
2026 1.27 0.866
2027 1.82 1.13
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.1 billion. This corresponds to a present value of 13.0 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.56 billion. Adding in the terminal value gives a total present value of 16.5 billion.

There are presently 37.9 million outstanding shares, so the intrinsic value per share is 436.85.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 598,768,000
Current Cash 72,174,000
Current Liabilities 243,546,000
Current Debt 0
Non-Cash Working Capital (NCWC) 283,048,000
Change in NCWC 93,392,000
EBIT 253,345,000
Tax Provision 66,423,000
Depreciation and Amortization 5,495,000
Capital Expenditure -8,526,000
Unlevered Free Cash Flow 290,058,494
Current Assets 531,422,000
Current Cash 87,336,000
Current Liabilities 254,430,000
Current Debt 0
Non-Cash Working Capital (NCWC) 189,656,000
Change in NCWC 245,396,000
EBIT 188,135,000
Tax Provision 24,417,000
Depreciation and Amortization 4,134,000
Capital Expenditure -19,637,000
Unlevered Free Cash Flow 394,251,370
Current Assets 123,672,000
Current Cash 50,124,000
Current Liabilities 129,288,000
Current Debt 0
Non-Cash Working Capital (NCWC) -55,740,000
Change in NCWC 6,042,000
EBIT 136,679,000
Tax Provision 13,968,000
Depreciation and Amortization 3,291,000
Capital Expenditure -1,978,000
Unlevered Free Cash Flow 130,469,426
Current Assets 98,504,000
Current Cash 49,357,000
Current Liabilities 110,929,000
Current Debt 0
Non-Cash Working Capital (NCWC) -61,782,000
Change in NCWC -34,414,000
EBIT 116,526,000
Tax Provision 30,560,000
Depreciation and Amortization 2,979,000
Capital Expenditure -5,366,000
Unlevered Free Cash Flow 52,238,761
Current Assets 86,128,000
Current Cash 47,596,000
Current Liabilities 65,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) -27,368,000
Change in NCWC -513,000
EBIT 143,454,000
Tax Provision 33,333,000
Depreciation and Amortization 1,891,000
Capital Expenditure -2,254,000
Unlevered Free Cash Flow 108,332,120

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