DCF Tool

SPNS

Sapiens International Corp NV – Software Publishers
Sapiens International Corporation N.V. empowers insurers to succeed in an evolving industry. The company offers digital software platforms, solutions and services for the property & casualty, life, pension & annuity, reinsurance, financial & compliance, workers' compensation and financial markets. With more than 35 years of experience delivering to over 500 organizations globally, Sapiens has a proven ability to satisfy customers' core, data and digital requirements.
Analysis Results
Intrinsic Value $11.45
Latest Price $19.00
Relative Value 66% overvalued
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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 10.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.9%, 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 35.9 32.9
2023 39.8 33.4
2024 44.1 34.0
2025 48.9 34.5
2026 54.3 35.1
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 778 million. This corresponds to a present value of 461 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 170 million. Adding in the terminal value gives a total present value of 631 million.

There are presently 55.1 million outstanding shares, so the intrinsic value per share is 11.45.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 300,345,000
Current Cash 210,243,000
Current Liabilities 151,695,000
Current Debt 19,796,000
Non-Cash Working Capital (NCWC) -41,797,000
Change in NCWC -1,614,000
EBIT 57,488,000
Tax Provision 9,964,000
Depreciation and Amortization 28,669,000
Capital Expenditure -11,848,000
Unlevered Free Cash Flow 62,695,865
Current Assets 267,358,000
Current Cash 182,561,000
Current Liabilities 144,776,000
Current Debt 19,796,000
Non-Cash Working Capital (NCWC) -40,183,000
Change in NCWC -26,097,000
EBIT 45,003,000
Tax Provision 7,041,000
Depreciation and Amortization 23,383,000
Capital Expenditure -11,241,000
Unlevered Free Cash Flow 23,356,701
Current Assets 147,223,000
Current Cash 66,295,000
Current Liabilities 104,912,000
Current Debt 9,898,000
Non-Cash Working Capital (NCWC) -14,086,000
Change in NCWC -8,264,000
EBIT 37,869,000
Tax Provision 8,610,000
Depreciation and Amortization 19,138,000
Capital Expenditure -17,139,000
Unlevered Free Cash Flow 22,315,031
Current Assets 130,011,000
Current Cash 64,628,000
Current Liabilities 81,103,000
Current Debt 9,898,000
Non-Cash Working Capital (NCWC) -5,822,000
Change in NCWC 4,841,000
EBIT 23,022,000
Tax Provision 5,031,000
Depreciation and Amortization 19,862,000
Capital Expenditure -7,074,000
Unlevered Free Cash Flow 34,564,946
Current Assets 130,973,000
Current Cash 71,467,000
Current Liabilities 70,169,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,663,000
Change in NCWC -3,988,000
EBIT 1,002,000
Tax Provision -2,564,000
Depreciation and Amortization 15,871,000
Capital Expenditure -8,189,000
Unlevered Free Cash Flow 4,696,000
Current Assets 120,201,000
Current Cash 79,128,000
Current Liabilities 47,748,000
Current Debt 0
Non-Cash Working Capital (NCWC) -6,675,000
Change in NCWC 5,110,000
EBIT 24,840,000
Tax Provision 5,772,000
Depreciation and Amortization 10,021,000
Capital Expenditure -10,209,000
Unlevered Free Cash Flow 24,111,249
Current Assets 98,343,000
Current Cash 63,127,000
Current Liabilities 47,001,000
Current Debt 0
Non-Cash Working Capital (NCWC) -11,785,000
Change in NCWC -9,223,000
EBIT 24,350,000
Tax Provision 4,213,000
Depreciation and Amortization 9,625,000
Capital Expenditure -8,847,000
Unlevered Free Cash Flow 11,720,014
Current Assets 82,221,000
Current Cash 47,400,000
Current Liabilities 37,383,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,562,000
Change in NCWC 4,916,000
EBIT 14,906,000
Tax Provision 454,000
Depreciation and Amortization 8,717,000
Capital Expenditure -7,562,000
Unlevered Free Cash Flow 20,526,745
Current Assets 100,528,000
Current Cash 70,313,000
Current Liabilities 37,693,000
Current Debt 0
Non-Cash Working Capital (NCWC) -7,478,000
Change in NCWC 2,849,000
EBIT 11,883,000
Tax Provision 811,000
Depreciation and Amortization 7,887,000
Capital Expenditure -9,521,000
Unlevered Free Cash Flow 12,321,001
Current Assets 50,420,000
Current Cash 29,050,000
Current Liabilities 31,697,000
Current Debt 0
Non-Cash Working Capital (NCWC) -10,327,000
Change in NCWC 3,397,000
EBIT 12,045,000
Tax Provision 435,000
Depreciation and Amortization 7,393,000
Capital Expenditure -4,791,000
Unlevered Free Cash Flow 17,615,860

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