DCF Tool

PRGS

Progress Software Corp. – Data Processing, Hosting, and Related Services
Progress provides the best products to develop, deploy and manage high-impact business applications. Its comprehensive product stack is designed to make technology teams more productive and it has a deep commitment to the developer community, both open source and commercial alike. With Progress, organizations can accelerate the creation and delivery of strategic business applications, automate the process by which apps are configured, deployed and scaled, and make critical data and content more accessible and secure-leading to competitive differentiation and business success. Over 1,700 independent software vendors, 100,000+ enterprise customers, and a three-million-strong developer community rely on Progress to power their applications.
Analysis Results
Intrinsic Value $87.52
Latest Price $46.70
Relative Value 47% 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 11.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.9%, 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 141 132
2023 157 138
2024 176 144
2025 197 151
2026 221 158
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 4630 million. This corresponds to a present value of 3110 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 724 million. Adding in the terminal value gives a total present value of 3830 million.

There are presently 43.8 million outstanding shares, so the intrinsic value per share is 87.52.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 675,616,000
Current Cash 314,746,000
Current Liabilities 645,858,000
Current Debt 51,534,000
Non-Cash Working Capital (NCWC) -233,454,000
Change in NCWC -122,093,000
EBIT 253,024,000
Tax Provision 34,228,000
Depreciation and Amortization 105,968,000
Capital Expenditure -9,308,000
Unlevered Free Cash Flow 182,264,176
Current Assets 238,935,000
Current Cash 105,995,000
Current Liabilities 262,543,000
Current Debt 18,242,000
Non-Cash Working Capital (NCWC) -111,361,000
Change in NCWC 7,827,000
EBIT 117,271,000
Tax Provision 16,913,000
Depreciation and Amortization 6,144,000
Capital Expenditure -6,517,000
Unlevered Free Cash Flow 104,200,299
Current Assets 284,665,000
Current Cash 173,685,000
Current Liabilities 240,885,000
Current Debt 10,717,000
Non-Cash Working Capital (NCWC) -119,188,000
Change in NCWC -18,295,000
EBIT 72,169,000
Tax Provision 2,095,000
Depreciation and Amortization 7,552,000
Capital Expenditure -3,998,000
Unlevered Free Cash Flow 52,122,014
Current Assets 228,819,000
Current Cash 139,513,000
Current Liabilities 196,018,000
Current Debt 5,819,000
Non-Cash Working Capital (NCWC) -100,893,000
Change in NCWC 21,508,000
EBIT 95,126,000
Tax Provision 15,489,000
Depreciation and Amortization 6,941,000
Capital Expenditure -7,250,000
Unlevered Free Cash Flow 97,669,560
Current Assets 263,407,000
Current Cash 183,609,000
Current Liabilities 208,018,000
Current Debt 5,819,000
Non-Cash Working Capital (NCWC) -122,401,000
Change in NCWC -19,962,000
EBIT 96,302,000
Tax Provision 28,170,000
Depreciation and Amortization 7,526,000
Capital Expenditure -3,377,000
Unlevered Free Cash Flow 39,126,727
Current Assets 336,053,000
Current Cash 249,754,000
Current Liabilities 203,738,000
Current Debt 15,000,000
Non-Cash Working Capital (NCWC) -102,439,000
Change in NCWC 5,972,000
EBIT 70,274,000
Tax Provision 20,446,000
Depreciation and Amortization 8,506,000
Capital Expenditure -5,786,000
Unlevered Free Cash Flow 78,966,000
Current Assets 323,409,000
Current Cash 241,279,000
Current Liabilities 199,916,000
Current Debt 9,375,000
Non-Cash Working Capital (NCWC) -108,411,000
Change in NCWC -57,513,000
EBIT 31,982,000
Tax Provision 21,155,000
Depreciation and Amortization 9,394,000
Capital Expenditure -8,845,000
Unlevered Free Cash Flow -46,137,000
Current Assets 385,673,000
Current Cash 283,268,000
Current Liabilities 153,303,000
Current Debt 0
Non-Cash Working Capital (NCWC) -50,898,000
Change in NCWC 7,310,000
EBIT 88,868,000
Tax Provision 28,346,000
Depreciation and Amortization 9,775,000
Capital Expenditure -11,801,000
Unlevered Free Cash Flow 61,775,099
Current Assets 337,811,000
Current Cash 231,440,000
Current Liabilities 164,579,000
Current Debt 0
Non-Cash Working Capital (NCWC) -58,208,000
Change in NCWC 10,345,000
EBIT 78,927,000
Tax Provision 23,006,000
Depreciation and Amortization 10,345,000
Capital Expenditure -5,062,000
Unlevered Free Cash Flow 65,633,244
Current Assets 526,818,000
Current Cash 355,217,000
Current Liabilities 240,154,000
Current Debt 0
Non-Cash Working Capital (NCWC) -68,553,000
Change in NCWC 16,237,000
EBIT 57,755,000
Tax Provision 17,032,000
Depreciation and Amortization 9,305,000
Capital Expenditure -7,735,000
Unlevered Free Cash Flow 55,744,062

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.