DCF Tool

PRGS

progress software corporation (nasdaq: prgs) is a global software company that simplifies the development, deployment and management of business applications on-premise or on any cloud, on any platform and on any device with minimal it complexity and low total cost of ownership. over 400,000 end-user customers globally run on progress openedge-based applications, and more than 1,400 isvs around the world are powered by progress software. global headquarters 14 oak park drive bedford, ma 01730 usa +781-280-4000
Analysis Results
Intrinsic Value $181.54
Latest Price $50.98
Relative Value 72% 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 18.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.7%, 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)
2024 234 219
2025 278 243
2026 330 270
2027 391 300
2028 464 334
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9810 million. This corresponds to a present value of 6600 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1370 million. Adding in the terminal value gives a total present value of 7970 million.

There are presently 43.9 million outstanding shares, so the intrinsic value per share is 181.54.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 330,788,000
Current Cash 126,958,000
Current Liabilities 352,118,000
Current Debt 13,109,000
Non-Cash Working Capital (NCWC) -135,179,000
Change in NCWC 6,815,000
EBIT 129,798,000
Tax Provision 9,460,000
Depreciation and Amortization 103,147,000
Capital Expenditure -5,570,000
Unlevered Free Cash Flow 218,775,295
Current Assets 426,053,000
Current Cash 256,277,000
Current Liabilities 318,004,000
Current Debt 6,234,000
Non-Cash Working Capital (NCWC) -141,994,000
Change in NCWC -25,267,000
EBIT 127,445,000
Tax Provision 22,186,000
Depreciation and Amortization 74,732,000
Capital Expenditure -6,090,000
Unlevered Free Cash Flow 146,705,934
Current Assets 337,808,000
Current Cash 157,373,000
Current Liabilities 322,929,000
Current Debt 25,767,000
Non-Cash Working Capital (NCWC) -116,727,000
Change in NCWC -5,366,000
EBIT 126,512,000
Tax Provision 17,114,000
Depreciation and Amortization 52,984,000
Capital Expenditure -4,654,000
Unlevered Free Cash Flow 146,812,588
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

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