DCF Tool

MITK

Mitek Systems Inc – Software Publishers
Mitek Systems Inc. is a global leader in mobile capture and digital identity verification built on the latest advancements in computer vision and artificial intelligence. Mitek's identity verification solutions enable organizations to verify an individual's identity during digital transactions to reduce risk and meet regulatory requirements, while increasing revenue from digital channels. More than 7,500 organizations use Mitek to enable trust and convenience for mobile check deposit, new account opening and more. Mitek is based in San Diego, Calif., with offices across the U.S. and Europe.
Analysis Results
Intrinsic Value $68.76
Latest Price $9.16
Relative Value 87% 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 43.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 43.9%, 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 38.5 36.2
2023 55.4 49.0
2024 79.6 66.2
2025 115 89.6
2026 165 121
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3880 million. This corresponds to a present value of 2690 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 362 million. Adding in the terminal value gives a total present value of 3050 million.

There are presently 44.3 million outstanding shares, so the intrinsic value per share is 68.76.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 408,112,000
Current Cash 358,738,000
Current Liabilities 78,418,000
Current Debt 0
Non-Cash Working Capital (NCWC) -29,044,000
Change in NCWC -28,793,000
EBIT 44,456,000
Tax Provision 1,648,000
Depreciation and Amortization 17,888,000
Capital Expenditure -2,774,000
Unlevered Free Cash Flow 26,615,247
Current Assets 84,126,000
Current Cash 60,021,000
Current Liabilities 24,356,000
Current Debt 0
Non-Cash Working Capital (NCWC) -251,000
Change in NCWC -1,083,000
EBIT 15,329,000
Tax Provision 1,595,000
Depreciation and Amortization 7,943,000
Capital Expenditure -803,000
Unlevered Free Cash Flow 18,787,450
Current Assets 54,130,000
Current Cash 33,250,000
Current Liabilities 20,048,000
Current Debt 0
Non-Cash Working Capital (NCWC) 832,000
Change in NCWC 1,087,000
EBIT 6,040,000
Tax Provision -3,264,000
Depreciation and Amortization 8,412,000
Capital Expenditure -1,063,000
Unlevered Free Cash Flow 14,476,000
Current Assets 37,628,000
Current Cash 17,476,000
Current Liabilities 20,407,000
Current Debt 0
Non-Cash Working Capital (NCWC) -255,000
Change in NCWC 971,000
EBIT 433,000
Tax Provision 3,066,000
Depreciation and Amortization 4,638,000
Capital Expenditure -4,307,000
Unlevered Free Cash Flow 1,735,000
Current Assets 50,876,000
Current Cash 42,568,000
Current Liabilities 9,534,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,226,000
Change in NCWC 667,000
EBIT 5,125,000
Tax Provision -10,921,000
Depreciation and Amortization 913,000
Capital Expenditure -488,000
Unlevered Free Cash Flow 6,217,000
Current Assets 40,307,000
Current Cash 33,873,000
Current Liabilities 8,327,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,893,000
Change in NCWC 776,274
EBIT 4,000,000
Tax Provision -1,000
Depreciation and Amortization 1,388,000
Capital Expenditure -250,000
Unlevered Free Cash Flow 5,914,274
Current Assets 31,408,865
Current Cash 26,673,966
Current Liabilities 7,404,173
Current Debt 0
Non-Cash Working Capital (NCWC) -2,669,274
Change in NCWC -117,534
EBIT 3,259,781
Tax Provision -543,020
Depreciation and Amortization 605,725
Capital Expenditure -73,126
Unlevered Free Cash Flow 3,674,846
Current Assets 27,695,519
Current Cash 24,035,760
Current Liabilities 6,211,499
Current Debt 0
Non-Cash Working Capital (NCWC) -2,551,740
Change in NCWC 1,110,391
EBIT -5,407,826
Tax Provision 2,226
Depreciation and Amortization 470,697
Capital Expenditure -135,452
Unlevered Free Cash Flow -3,962,190
Current Assets 31,181,661
Current Cash 29,025,328
Current Liabilities 5,818,464
Current Debt 0
Non-Cash Working Capital (NCWC) -3,662,131
Change in NCWC -2,141,951
EBIT -7,299,538
Tax Provision 1,076
Depreciation and Amortization 323,383
Capital Expenditure -1,497,492
Unlevered Free Cash Flow -10,615,598
Current Assets 14,104,103
Current Cash 12,521,627
Current Liabilities 3,102,656
Current Debt 0
Non-Cash Working Capital (NCWC) -1,520,180
Change in NCWC -3,020,526
EBIT -7,881,164
Tax Provision -4,008
Depreciation and Amortization 231,981
Capital Expenditure -339,715
Unlevered Free Cash Flow -11,009,424

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