DCF Tool

HTGC

Hercules Capital Inc – Securities and Commodity Exchanges
hercules technology growth capital, inc. (nyse: htgc) ("hercules") is the leading specialty finance company focused on providing senior secured loans to venture capital-backed companies in technology-related markets, including technology, biotechnology, life science, and energy & renewable technology industries, at all stages of development. since inception (december 2003), hercules has committed more than $4.6 billion to over 300 companies and is the lender of choice for entrepreneurs and venture capital firms seeking growth capital financing. at hercules, we provide venture debt to entrepreneurial companies at all stages of development to further their growth and help them achieve key milestones. in addition to the capital we provide, many times the access to our network of contacts and simple business advice can prove to be equally as valuable. we understand the importance of these intangibles because we, like the companies which choose hercules, also come from an entrepreneur
Analysis Results
Intrinsic Value $30.08
Latest Price $16.34
Relative Value 46% 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 3.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 3.4%, 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 222 207
2024 230 200
2025 237 193
2026 245 187
2027 254 180
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 5100 million. This corresponds to a present value of 3380 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 968 million. Adding in the terminal value gives a total present value of 4350 million.

There are presently 145.0 million outstanding shares, so the intrinsic value per share is 30.08.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,021,513,000
Current Cash 0
Current Liabilities 1,621,890,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,399,623,000
Change in NCWC 95,555,000
EBIT 102,081,000
Tax Provision 0
Depreciation and Amortization 204,000
Capital Expenditure -114,000
Unlevered Free Cash Flow 197,726,000
Current Assets 2,588,152,000
Current Cash 0
Current Liabilities 1,284,084,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,304,068,000
Change in NCWC 12,330,000
EBIT 174,155,000
Tax Provision 0
Depreciation and Amortization 317,000
Capital Expenditure -106,000
Unlevered Free Cash Flow 186,696,000
Current Assets 2,614,719,000
Current Cash 0
Current Liabilities 1,322,981,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,291,738,000
Change in NCWC 159,390,000
EBIT 227,261,000
Tax Provision 0
Depreciation and Amortization 415,000
Capital Expenditure -137,000
Unlevered Free Cash Flow 386,929,000
Current Assets 2,449,729,000
Current Cash 0
Current Liabilities 1,317,381,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,132,348,000
Change in NCWC 178,906,000
EBIT 173,598,000
Tax Provision 0
Depreciation and Amortization 262,000
Capital Expenditure -595,000
Unlevered Free Cash Flow 352,171,000
Current Assets 1,943,189,000
Current Cash 0
Current Liabilities 989,747,000
Current Debt 0
Non-Cash Working Capital (NCWC) 953,442,000
Change in NCWC 117,719,000
EBIT 97,642,000
Tax Provision 0
Depreciation and Amortization 199,000
Capital Expenditure -475,000
Unlevered Free Cash Flow 215,085,000
Current Assets 1,649,471,000
Current Cash 0
Current Liabilities 813,748,000
Current Debt 0
Non-Cash Working Capital (NCWC) 835,723,000
Change in NCWC 55,061,000
EBIT 69,733,000
Tax Provision 0
Depreciation and Amortization 201,000
Capital Expenditure -274,000
Unlevered Free Cash Flow 124,721,000
Current Assets 1,456,922,000
Current Cash 0
Current Liabilities 676,260,000
Current Debt 0
Non-Cash Working Capital (NCWC) 780,662,000
Change in NCWC 84,025,000
EBIT 96,920,000
Tax Provision 0
Depreciation and Amortization 202,000
Capital Expenditure -252,000
Unlevered Free Cash Flow 180,895,000
Current Assets 1,314,264,000
Current Cash 0
Current Liabilities 617,627,000
Current Debt 0
Non-Cash Working Capital (NCWC) 696,637,000
Change in NCWC 67,030,000
EBIT 78,648,000
Tax Provision 0
Depreciation and Amortization 193,000
Capital Expenditure -187,000
Unlevered Free Cash Flow 145,684,000
Current Assets 1,269,966,000
Current Cash 0
Current Liabilities 640,359,000
Current Debt 0
Non-Cash Working Capital (NCWC) 629,607,000
Change in NCWC 7,419,000
EBIT 91,862,000
Tax Provision 0
Depreciation and Amortization 266,000
Capital Expenditure -190,000
Unlevered Free Cash Flow 99,357,000
Current Assets 1,193,896,000
Current Cash 0
Current Liabilities 571,708,000
Current Debt 0
Non-Cash Working Capital (NCWC) 622,188,000
Change in NCWC 130,934,000
EBIT 87,901,000
Tax Provision 0
Depreciation and Amortization 252,000
Capital Expenditure -311,000
Unlevered Free Cash Flow 218,776,000

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