DCF Tool

HSTM

Healthstream Inc – Research and Development in the Physical, Engineering, and Life Sciences (except Biotechnology)
HealthStream is dedicated to improving patient outcomes through the development of healthcare organizations' greatest asset: their people. Its unified suite of solutions is contracted by healthcare organizations across the U.S. for workforce development, training & learning management, nurse & staff scheduling, clinical education, credentialing, privileging, provider enrollment, performance assessment, and managing simulation-based education programs. HealthStream's corporate office is in Nashville, Tennessee.
Analysis Results
Intrinsic Value $48.99
Latest Price $24.90
Relative Value 49% 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 26.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 26.1%, 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 32.8 30.8
2023 41.3 36.4
2024 52.1 43.1
2025 65.7 51.0
2026 82.9 60.4
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1870 million. This corresponds to a present value of 1280 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 222 million. Adding in the terminal value gives a total present value of 1500 million.

There are presently 30.6 million outstanding shares, so the intrinsic value per share is 48.99.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 106,845,000
Current Cash 51,946,000
Current Liabilities 100,350,000
Current Debt 0
Non-Cash Working Capital (NCWC) -45,451,000
Change in NCWC 5,760,000
EBIT 8,055,000
Tax Provision 1,921,000
Depreciation and Amortization 36,813,000
Capital Expenditure -25,346,000
Unlevered Free Cash Flow 23,289,512
Current Assets 114,725,000
Current Cash 46,494,000
Current Liabilities 119,442,000
Current Debt 0
Non-Cash Working Capital (NCWC) -51,211,000
Change in NCWC 2,268,000
EBIT 15,818,000
Tax Provision 3,732,000
Depreciation and Amortization 30,189,000
Capital Expenditure -18,803,000
Unlevered Free Cash Flow 26,159,831
Current Assets 224,572,000
Current Cash 172,866,000
Current Liabilities 105,185,000
Current Debt 0
Non-Cash Working Capital (NCWC) -53,479,000
Change in NCWC -19,241,000
EBIT 14,720,000
Tax Provision 3,733,000
Depreciation and Amortization 27,869,000
Capital Expenditure -36,510,000
Unlevered Free Cash Flow -16,226,853
Current Assets 241,434,000
Current Cash 168,818,000
Current Liabilities 106,854,000
Current Debt 0
Non-Cash Working Capital (NCWC) -34,238,000
Change in NCWC -1,782,000
EBIT 15,491,000
Tax Provision 3,324,000
Depreciation and Amortization 24,231,000
Capital Expenditure -18,450,000
Unlevered Free Cash Flow 16,383,388
Current Assets 199,728,000
Current Cash 131,118,000
Current Liabilities 101,066,000
Current Debt 0
Non-Cash Working Capital (NCWC) -32,456,000
Change in NCWC -11,749,000
EBIT 9,800,000
Tax Provision 529,000
Depreciation and Amortization 26,283,000
Capital Expenditure -17,873,000
Unlevered Free Cash Flow 5,968,813
Current Assets 177,437,000
Current Cash 103,174,000
Current Liabilities 94,970,000
Current Debt 0
Non-Cash Working Capital (NCWC) -20,707,000
Change in NCWC 7,820,000
EBIT 5,567,000
Tax Provision 2,393,000
Depreciation and Amortization 22,207,000
Capital Expenditure -14,806,000
Unlevered Free Cash Flow 18,621,143
Current Assets 209,537,000
Current Cash 148,986,000
Current Liabilities 89,078,000
Current Debt 0
Non-Cash Working Capital (NCWC) -28,527,000
Change in NCWC -4,911,000
EBIT 13,557,000
Tax Provision 5,098,000
Depreciation and Amortization 16,997,000
Capital Expenditure -15,359,000
Unlevered Free Cash Flow 5,246,199
Current Assets 174,611,000
Current Cash 120,968,000
Current Liabilities 77,259,000
Current Debt 0
Non-Cash Working Capital (NCWC) -23,616,000
Change in NCWC -6,332,000
EBIT 16,375,000
Tax Provision 6,127,000
Depreciation and Amortization 10,931,000
Capital Expenditure -10,202,000
Unlevered Free Cash Flow 4,699,145
Current Assets 147,124,000
Current Cash 108,196,000
Current Liabilities 56,212,000
Current Debt 0
Non-Cash Working Capital (NCWC) -17,284,000
Change in NCWC -7,226,000
EBIT 14,666,000
Tax Provision 6,424,000
Depreciation and Amortization 7,852,000
Capital Expenditure -8,711,000
Unlevered Free Cash Flow 233,177
Current Assets 118,291,000
Current Cash 93,317,000
Current Liabilities 35,032,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,058,000
Change in NCWC -5,233,000
EBIT 13,459,000
Tax Provision 5,932,000
Depreciation and Amortization 6,661,000
Capital Expenditure -8,751,000
Unlevered Free Cash Flow 255,556

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