DCF Tool

VEEV

Veeva Systems Inc – Software and Other Prerecorded Compact Disc, Tape, and Record Reproducing
Veeva is the global leader in cloud software for the life sciences industry. Committed to innovation, product excellence, and customer success, Veeva serves more than 975 customers, ranging from the world's largest pharmaceutical companies to emerging biotechs. As a Public Benefit Corporation, Veeva is committed to balancing the interests of all stakeholders, including customers, employees, shareholders, and the industries it serves.
Analysis Results
Intrinsic Value $120.26
Latest Price $164.88
Relative Value 37% overvalued
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Cash Flow (Billions)
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 35.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 35.3%, 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 (billion) Present value (billion)
2023 0.586 0.53
2024 0.792 0.648
2025 1.07 0.793
2026 1.45 0.97
2027 1.96 1.19
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 23.3 billion. This corresponds to a present value of 12.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.13 billion. Adding in the terminal value gives a total present value of 16.9 billion.

There are presently 141.0 million outstanding shares, so the intrinsic value per share is 120.26.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,107,183,000
Current Cash 2,376,104,000
Current Liabilities 840,779,000
Current Debt 0
Non-Cash Working Capital (NCWC) -109,700,000
Change in NCWC -40,948,000
EBIT 505,496,000
Tax Provision 84,922,000
Depreciation and Amortization 27,448,000
Capital Expenditure -14,214,000
Unlevered Free Cash Flow 393,989,672
Current Assets 2,310,826,000
Current Cash 1,663,626,000
Current Liabilities 715,952,000
Current Debt 0
Non-Cash Working Capital (NCWC) -68,752,000
Change in NCWC 36,991,000
EBIT 377,794,000
Tax Provision 13,995,000
Depreciation and Amortization 29,455,000
Capital Expenditure -8,683,000
Unlevered Free Cash Flow 422,137,403
Current Assets 1,531,124,000
Current Cash 1,086,748,000
Current Liabilities 551,173,000
Current Debt 1,054,000
Non-Cash Working Capital (NCWC) -105,743,000
Change in NCWC -47,974,000
EBIT 286,219,000
Tax Provision 12,579,000
Depreciation and Amortization 19,859,000
Capital Expenditure -4,321,000
Unlevered Free Cash Flow 242,305,845
Current Assets 1,433,414,000
Current Cash 1,090,161,000
Current Liabilities 401,022,000
Current Debt 0
Non-Cash Working Capital (NCWC) -57,769,000
Change in NCWC 10,733,000
EBIT 222,866,000
Tax Provision 8,811,000
Depreciation and Amortization 14,071,000
Capital Expenditure -9,819,000
Unlevered Free Cash Flow 229,622,506
Current Assets 1,008,136,000
Current Cash 761,962,000
Current Liabilities 314,676,000
Current Debt 0
Non-Cash Working Capital (NCWC) -68,502,000
Change in NCWC -14,711,000
EBIT 150,792,000
Tax Provision 16,668,000
Depreciation and Amortization 14,277,000
Capital Expenditure -11,367,000
Unlevered Free Cash Flow 123,146,975
Current Assets 711,865,000
Current Cash 518,872,000
Current Liabilities 246,784,000
Current Debt 0
Non-Cash Working Capital (NCWC) -53,791,000
Change in NCWC -22,273,000
EBIT 107,968,000
Tax Provision 40,831,000
Depreciation and Amortization 13,825,000
Capital Expenditure -7,507,000
Unlevered Free Cash Flow 51,802,835
Current Assets 500,964,000
Current Cash 346,203,000
Current Liabilities 186,279,000
Current Debt 0
Non-Cash Working Capital (NCWC) -31,518,000
Change in NCWC 41,000
EBIT 78,589,000
Tax Provision 24,157,000
Depreciation and Amortization 8,464,000
Capital Expenditure -22,152,000
Unlevered Free Cash Flow 40,793,603
Current Assets 501,837,000
Current Cash 397,873,000
Current Liabilities 135,523,000
Current Debt 0
Non-Cash Working Capital (NCWC) -31,559,000
Change in NCWC -10,542,000
EBIT 69,966,000
Tax Provision 26,803,000
Depreciation and Amortization 3,929,000
Capital Expenditure -26,944,000
Unlevered Free Cash Flow 8,496,954
Current Assets 353,732,000
Current Cash 288,132,000
Current Liabilities 86,617,000
Current Debt 0
Non-Cash Working Capital (NCWC) -21,017,000
Change in NCWC -7,452,000
EBIT 39,304,000
Tax Provision 14,885,000
Depreciation and Amortization 2,410,000
Capital Expenditure -2,977,000
Unlevered Free Cash Flow 16,089,154

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