Intrinsic value of Mimecast - MIME

Previous Close

$32.51

  Intrinsic Value

$7.46

stock screener

  Rating & Target

str. sell

-77%

Previous close

$32.51

 
Intrinsic value

$7.46

 
Up/down potential

-77%

 
Rating

str. sell

*Intrinsic value change (in %) minus stock price change (in %) in the past 12 months.

We calculate the intrinsic value of MIME stock by summing up the current values of future distributable cash flows generated by the company and dividing the sum by the number of outstanding shares. As such, the intrinsic value calculation depends entirely on projections. The more accurate your projections of the company's performance are - the more reliable is the intrinsic value calculation result. Please make sure to check the stock valuation input data below and adjust it if necessary. The quality of the output (intrinsic valuation result) is only as good as the quality of the input. See also DISCLAIMERS.

STOCK VALUATION INPUT DATA

Initial revenue growth rate, %
Terminal revenue growth rate, %
Revenue decline factor
Initial discount rate, %
Discount rate multiplier
Shares outstanding, mln

 

FINANCIAL STATEMENTS FORECAST and PRESENT VALUE CALCULATION

Fiscal year
2017(a)
   2018
   2019
   2020
   2021
   2022
   2023
   2024
   2025
   2026
   2027
   2028
   2029
   2030
   2031
   2032
   2033
   2034
   2035
   2036
   2037
   2038
   2039
   2040
   2041
   2042
   2043
   2044
   2045
   2046
   2047

INCOME STATEMENT

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Revenue growth rate, %
  31.69
  43.20
  39.38
  35.94
  32.85
  30.06
  27.56
  25.30
  23.27
  21.44
  19.80
  18.32
  16.99
  15.79
  14.71
  13.74
  12.87
  12.08
  11.37
  10.73
  10.16
  9.64
  9.18
  8.76
  8.39
  8.05
  7.74
  7.47
  7.22
  7.00
  6.80
Revenue, $m
  187
  268
  373
  507
  674
  877
  1,118
  1,401
  1,727
  2,098
  2,513
  2,973
  3,479
  4,028
  4,620
  5,255
  5,931
  6,647
  7,403
  8,198
  9,031
  9,902
  10,811
  11,758
  12,744
  13,769
  14,835
  15,943
  17,095
  18,291
  19,535
Variable operating expenses, $m
 
  272
  379
  515
  684
  889
  1,134
  1,420
  1,751
  2,126
  2,547
  3,013
  3,525
  4,081
  4,682
  5,325
  6,010
  6,736
  7,502
  8,307
  9,151
  10,034
  10,955
  11,915
  12,914
  13,953
  15,033
  16,156
  17,323
  18,535
  19,795
Fixed operating expenses, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total operating expenses, $m
  197
  272
  379
  515
  684
  889
  1,134
  1,420
  1,751
  2,126
  2,547
  3,013
  3,525
  4,081
  4,682
  5,325
  6,010
  6,736
  7,502
  8,307
  9,151
  10,034
  10,955
  11,915
  12,914
  13,953
  15,033
  16,156
  17,323
  18,535
  19,795
Operating income, $m
  -10
  -4
  -5
  -7
  -9
  -12
  -15
  -19
  -24
  -28
  -34
  -40
  -46
  -54
  -62
  -70
  -79
  -89
  -99
  -109
  -120
  -132
  -144
  -157
  -170
  -183
  -198
  -212
  -228
  -244
  -260
EBITDA, $m
  2
  5
  7
  9
  12
  16
  20
  26
  32
  38
  46
  54
  64
  74
  84
  96
  108
  121
  135
  150
  165
  181
  198
  215
  233
  252
  271
  291
  312
  334
  357
Interest expense (income), $m
  0
  0
  0
  2
  4
  6
  9
  13
  18
  23
  29
  35
  42
  50
  59
  68
  78
  89
  100
  112
  124
  137
  151
  165
  180
  195
  211
  228
  246
  264
  282
Earnings before tax, $m
  -3
  -4
  -5
  -9
  -13
  -19
  -25
  -32
  -41
  -51
  -63
  -75
  -89
  -104
  -120
  -138
  -157
  -177
  -199
  -221
  -245
  -269
  -295
  -322
  -350
  -379
  -409
  -441
  -473
  -507
  -543
Tax expense, $m
  2
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Net income, $m
  -5
  -4
  -5
  -9
  -13
  -19
  -25
  -32
  -41
  -51
  -63
  -75
  -89
  -104
  -120
  -138
  -157
  -177
  -199
  -221
  -245
  -269
  -295
  -322
  -350
  -379
  -409
  -441
  -473
  -507
  -543

BALANCE SHEET

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Cash and short-term investments, $m
  112
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Total assets, $m
  205
  133
  186
  252
  335
  436
  556
  697
  859
  1,043
  1,250
  1,479
  1,730
  2,003
  2,297
  2,613
  2,949
  3,306
  3,681
  4,077
  4,491
  4,924
  5,376
  5,847
  6,337
  6,847
  7,377
  7,928
  8,501
  9,096
  9,714
Adjusted assets (=assets-cash), $m
  93
  133
  186
  252
  335
  436
  556
  697
  859
  1,043
  1,250
  1,479
  1,730
  2,003
  2,297
  2,613
  2,949
  3,306
  3,681
  4,077
  4,491
  4,924
  5,376
  5,847
  6,337
  6,847
  7,377
  7,928
  8,501
  9,096
  9,714
Revenue / Adjusted assets
  2.011
  2.015
  2.005
  2.012
  2.012
  2.011
  2.011
  2.010
  2.010
  2.012
  2.010
  2.010
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
  2.011
Average production assets, $m
  30
  42
  59
  80
  107
  139
  177
  221
  273
  331
  397
  470
  550
  636
  730
  830
  937
  1,050
  1,170
  1,295
  1,427
  1,564
  1,708
  1,858
  2,014
  2,176
  2,344
  2,519
  2,701
  2,890
  3,087
Working capital, $m
  56
  -77
  -108
  -147
  -195
  -253
  -323
  -405
  -499
  -606
  -726
  -859
  -1,005
  -1,164
  -1,335
  -1,519
  -1,714
  -1,921
  -2,140
  -2,369
  -2,610
  -2,862
  -3,124
  -3,398
  -3,683
  -3,979
  -4,287
  -4,608
  -4,940
  -5,286
  -5,646
Total debt, $m
  2
  -1
  46
  106
  181
  271
  379
  506
  652
  818
  1,004
  1,210
  1,436
  1,682
  1,947
  2,231
  2,533
  2,854
  3,192
  3,548
  3,921
  4,310
  4,717
  5,141
  5,582
  6,041
  6,518
  7,014
  7,530
  8,065
  8,622
Total liabilities, $m
  123
  120
  167
  227
  302
  392
  500
  627
  773
  939
  1,125
  1,331
  1,557
  1,803
  2,068
  2,352
  2,654
  2,975
  3,313
  3,669
  4,042
  4,431
  4,838
  5,262
  5,703
  6,162
  6,639
  7,135
  7,651
  8,186
  8,743
Total equity, $m
  82
  13
  19
  25
  34
  44
  56
  70
  86
  104
  125
  148
  173
  200
  230
  261
  295
  331
  368
  408
  449
  492
  538
  585
  634
  685
  738
  793
  850
  910
  971
Total liabilities and equity, $m
  205
  133
  186
  252
  336
  436
  556
  697
  859
  1,043
  1,250
  1,479
  1,730
  2,003
  2,298
  2,613
  2,949
  3,306
  3,681
  4,077
  4,491
  4,923
  5,376
  5,847
  6,337
  6,847
  7,377
  7,928
  8,501
  9,096
  9,714
Debt-to-equity ratio
  0.024
  -0.090
  2.480
  4.200
  5.390
  6.220
  6.820
  7.260
  7.590
  7.840
  8.030
  8.180
  8.300
  8.400
  8.470
  8.540
  8.590
  8.630
  8.670
  8.700
  8.730
  8.750
  8.770
  8.790
  8.810
  8.820
  8.840
  8.850
  8.860
  8.870
  8.880
Adjusted equity ratio
  -0.323
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100
  0.100

CASH FLOW

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Net income, $m
  -5
  -4
  -5
  -9
  -13
  -19
  -25
  -32
  -41
  -51
  -63
  -75
  -89
  -104
  -120
  -138
  -157
  -177
  -199
  -221
  -245
  -269
  -295
  -322
  -350
  -379
  -409
  -441
  -473
  -507
  -543
Depreciation, amort., depletion, $m
  12
  9
  12
  17
  22
  28
  36
  45
  55
  67
  80
  94
  110
  127
  146
  166
  187
  210
  234
  259
  285
  313
  342
  372
  403
  435
  469
  504
  540
  578
  617
Funds from operations, $m
  55
  5
  7
  8
  9
  10
  11
  12
  14
  16
  17
  19
  21
  23
  26
  28
  30
  33
  35
  38
  41
  44
  47
  50
  53
  56
  60
  63
  67
  71
  75
Change in working capital, $m
  22
  -23
  -30
  -39
  -48
  -59
  -70
  -82
  -94
  -107
  -120
  -133
  -146
  -159
  -171
  -183
  -195
  -207
  -218
  -230
  -241
  -252
  -263
  -274
  -285
  -296
  -308
  -320
  -333
  -346
  -359
Cash from operations, $m
  33
  28
  37
  46
  57
  68
  81
  94
  108
  123
  137
  152
  167
  182
  197
  211
  226
  240
  254
  268
  282
  295
  309
  324
  338
  353
  368
  383
  400
  417
  434
Maintenance CAPEX, $m
  0
  -6
  -8
  -12
  -16
  -21
  -28
  -35
  -44
  -55
  -66
  -79
  -94
  -110
  -127
  -146
  -166
  -187
  -210
  -234
  -259
  -285
  -313
  -342
  -372
  -403
  -435
  -469
  -504
  -540
  -578
New CAPEX, $m
  -18
  -13
  -17
  -21
  -26
  -32
  -38
  -45
  -52
  -59
  -66
  -73
  -80
  -87
  -94
  -100
  -107
  -113
  -119
  -126
  -132
  -138
  -144
  -150
  -156
  -162
  -168
  -175
  -182
  -189
  -197
Cash from investing activities, $m
  -85
  -19
  -25
  -33
  -42
  -53
  -66
  -80
  -96
  -114
  -132
  -152
  -174
  -197
  -221
  -246
  -273
  -300
  -329
  -360
  -391
  -423
  -457
  -492
  -528
  -565
  -603
  -644
  -686
  -729
  -775
Free cash flow, $m
  -52
  10
  12
  13
  14
  15
  15
  14
  12
  9
  5
  0
  -7
  -15
  -24
  -35
  -47
  -61
  -76
  -92
  -109
  -128
  -147
  -168
  -189
  -212
  -236
  -260
  -286
  -313
  -340
Issuance/(repayment) of debt, $m
  -5
  -1
  47
  60
  75
  91
  108
  127
  146
  166
  186
  206
  226
  246
  265
  284
  303
  321
  338
  356
  373
  390
  407
  424
  441
  459
  477
  496
  515
  535
  557
Issuance/(repurchase) of shares, $m
  4
  45
  11
  16
  21
  29
  37
  47
  57
  70
  83
  98
  114
  131
  150
  170
  191
  213
  236
  260
  286
  312
  340
  369
  399
  430
  462
  496
  531
  567
  604
Cash from financing (excl. dividends), $m  
  0
  44
  58
  76
  96
  120
  145
  174
  203
  236
  269
  304
  340
  377
  415
  454
  494
  534
  574
  616
  659
  702
  747
  793
  840
  889
  939
  992
  1,046
  1,102
  1,161
Total cash flow (excl. dividends), $m
  -55
  54
  70
  89
  110
  134
  160
  187
  216
  245
  275
  304
  333
  362
  391
  419
  446
  473
  499
  524
  550
  575
  600
  625
  651
  677
  703
  731
  760
  790
  821
Retained Cash Flow (-), $m
  -4
  -45
  -11
  -16
  -21
  -29
  -37
  -47
  -57
  -70
  -83
  -98
  -114
  -131
  -150
  -170
  -191
  -213
  -236
  -260
  -286
  -312
  -340
  -369
  -399
  -430
  -462
  -496
  -531
  -567
  -604
Prev. year cash balance distribution, $m
 
  110
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash flow adjustment, $m
 
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
  0
Cash available for distribution, $m
 
  118
  59
  73
  89
  106
  123
  141
  158
  175
  191
  206
  219
  231
  241
  249
  255
  260
  263
  264
  264
  262
  260
  256
  252
  247
  241
  235
  229
  223
  216
Discount rate, %
 
  4.30
  4.52
  4.74
  4.98
  5.23
  5.49
  5.76
  6.05
  6.35
  6.67
  7.00
  7.35
  7.72
  8.11
  8.51
  8.94
  9.39
  9.86
  10.35
  10.87
  11.41
  11.98
  12.58
  13.21
  13.87
  14.56
  15.29
  16.05
  16.86
  17.70
PV of cash for distribution, $m
 
  113
  54
  64
  73
  82
  89
  95
  99
  101
  100
  98
  94
  88
  81
  73
  65
  57
  48
  41
  34
  27
  22
  17
  13
  10
  7
  5
  4
  2
  2
Current shareholders' claim on cash, %
  100
  50.0
  46.3
  42.7
  39.4
  36.3
  33.4
  30.9
  28.5
  26.4
  24.4
  22.6
  21.0
  19.5
  18.2
  16.9
  15.8
  14.7
  13.7
  12.8
  12.0
  11.2
  10.5
  9.8
  9.2
  8.6
  8.1
  7.6
  7.1
  6.6
  6.2

Mimecast Limited is a provider of cloud security and risk management services for corporate information and e-mail. The Company's suite of cloud services protects customers from the business and data security risks. It also mitigates the business disruption that e-mail failure or downtime causes. In addition, its archiving services secure, store and manage critical corporate communications and information to address the compliance and e-discovery requirements. It has developed its cloud architecture to offer customers e-mail security, continuity and archiving capabilities in a single service. It has developed an operating system (OS) called Mime OS for native cloud services. It protects inbound and outbound e-mail from malware, spam, threats, e-mail denial of service (DoS) and distributed denial of service (DDoS), data leaks and other security threats. It also offers service bundles, and Mimecast mobile and desktop applications.


Warning: Division by zero in /home3/webhub/public_html/x-fin.com/stocks/a-inc/ratios.php on line 38

FINANCIAL RATIOS  of  Mimecast (MIME)

Valuation Ratios
P/E Ratio -352.5
Price to Sales 9.4
Price to Book 21.5
Price to Tangible Book
Price to Cash Flow 53.4
Price to Free Cash Flow 117.5
Growth Rates
Sales Growth Rate 31.7%
Sales - 3 Yr. Growth Rate %
EPS Growth Rate %
EPS - 3 Yr. Growth Rate %
Capital Spending Gr. Rate 28.6%
Cap. Spend. - 3 Yr. Gr. Rate 0%
Financial Strength
Quick Ratio 56
Current Ratio 0
LT Debt to Equity 0%
Total Debt to Equity 2.4%
Interest Coverage 0
Management Effectiveness
Return On Assets -2.6%
Ret/ On Assets - 3 Yr. Avg. -1.2%
Return On Total Capital -5.9%
Ret/ On T. Cap. - 3 Yr. Avg. -3.9%
Return On Equity -6.3%
Return On Equity - 3 Yr. Avg. -4.5%
Asset Turnover 1
Profitability Ratios
Gross Margin 72.7%
Gross Margin - 3 Yr. Avg. 70.4%
EBITDA Margin 4.8%
EBITDA Margin - 3 Yr. Avg. 7.2%
Operating Margin -5.3%
Oper. Margin - 3 Yr. Avg. -3.4%
Pre-Tax Margin -1.6%
Pre-Tax Margin - 3 Yr. Avg. -1%
Net Profit Margin -2.7%
Net Profit Margin - 3 Yr. Avg. -1.6%
Effective Tax Rate -66.7%
Eff/ Tax Rate - 3 Yr. Avg. -38.9%
Payout Ratio 0%

MIME stock valuation input parameters

Revenue. Company's revenue (or sales) is always the starting point of any cash flow forecast. In the MIME stock intrinsic value calculation we used $187 million for the last fiscal year's total revenue generated by Mimecast. The default revenue input number comes from 2017 income statement of Mimecast. You may change it if you feel that it should be adjusted for some unusual circumstances that are not expected to be repeated in the future or if you already know (from interim financial statements, for example) that this year's revenue is going to be quite different.

Revenue growth rate. Forecasted future revenue growth rate is the most important input parameter for the intrinsic value calculation. Unlike other input parameters that are reasonably expected to be in line with their historic averages or their historic trends, the revenue growth rate by and large is a wild card: nobody really knows what the company's revenue will be in the future. Of course, the level of unpredictability is different for different industries (utility companies being the most predictable and, thus, less risky).
    We use three input parameters to forecast the revenue growth rate in our MIME stock valuation model: a) initial revenue growth rate of 43.2% whose default value is the revenue growth rate in the most recent quarter compared to the quarterly revenue a year ago; b) terminal revenue growth rate of 5% whose default value is chosen to be close to the average nominal (i.e. not adjusted for inflation) GDP growth rate; and c) revenue decline factor of 0.9, which stipulates that revenue growth rate in each forecasted year will be equal to the difference of the revenue growth rate in the preceding year and the terminal revenue growth rate multiplied by this revenue decline factor (with the passage of time the revenue growth rate will be approaching the terminal revenue growth rate, but not quite reaching it - though the difference could be infinitesimally small).
    At the revenue decline factor of 1, the future revenue growth rate is forecasted to be constant and equal to the initial revenue growth rate. The smaller the revenue decline factor, the faster the revenue growth rate will approach the terminal revenue growth.

Discount rate. The discount rate is used for determining the present value of future cash flows: future cash flows are "discounted" as at normal conditions (that translate into positive expected return on investment) one dollar today is worth more than the same dollar in the future. Unlike all other valuation models, we use variable discount rate, i.e. it increases for each consecutive year. This is done to account for higher risk of cash flows coming in further in the future.
    The initial discount rate of 4.3%, whose default value for MIME is calculated based on our internal credit rating of Mimecast, is applied to the cash flow expected to be received a year from now (well, actually, to be precise, in the financial year following the base year - the last year for which we have financial statements). For each consecutive year the discount rate is multiplied by the discount rate multiplier of 1.05, e.i. each year it increases by 5%. Feel free to change this number to correspond to your level of risk assessment of Mimecast.
    By the way, it is easy to set the discount rate to be constant (this would make comparison with other valuation models easier): just set the discount rate multiplier equal to 1 and chose the magnitude of the initial discount rate to your liking.

Variable cost ratio is the ratio of variable costs (i.e. costs that fluctuate with fluctuation of the volume of production) to the revenue expressed as a percentage. In the calculation of intrinsic value of MIME stock the variable cost ratio is equal to 101.6%.

Fixed operating expenses is just that - expenses that are not dependant on the volume of production. They are set to $0 million in the base year in the intrinsic value calculation for MIME stock. These expenses increase with the level of inflation in subsequent years.

Interest rate on debt is the average all-in rate of interest paid by the company on its debt. It is set at 3.5% for Mimecast.

Corporate tax rate of 27% is the nominal tax rate for Mimecast. In reality, companies find ways to pay much less taxes than that or not to pay them at all.

Cash flow adjustment could be used for any adjustment the investor deems necessary. Most commonly we use this field to account for stock options-related effects in excess of what is reported on the company's income statement. The cash flow adjustment is expressed as a percentage of the revenue, and in the current valuation of the MIME stock is equal to 0%.

Production assets are the company's assets used for manufacturing products or provision of services. In the valuation model input table they are expressed as a percentage of revenue and for MIME are equal to 15.8%.

Life of production assets of 2.7 years is the average useful life of capital assets used in Mimecast operations. It is used to calculate yearly capital expenditures needed to keep these assets in good order - we call it the maintenance CAPEX.

Working capital is the difference between the company's current assets and liabilities. In the model we use the ratio of working capital to revenue, which for MIME is equal to -28.9%. A negative number means that the company is apt at using financial resources of its suppliers and customers; a large positive number, on the other hand, means that it either provides in-kind financing to others or is not good at managing its inventories.

Book value of equity - $82 million for Mimecast - is used in calculation of the "floor" for intrinsic valuation based on the discounted cash flow (DCF) method. Even if the prospects are very bad for a company, its assets could always be sold now for their current fair market value.

Shares outstanding of 58.598 million for Mimecast is needed to calculate the intrinsic value of one share.

Market capitalization is used here only for reference purposes and as a quick check that the share price and the number of shares outstanding numbers are correct - something especially to be cognizant about at stock splits. So, the market capitalization of Mimecast at the current share price and the inputted number of shares is $1.9 billion.

RELATED COMPANIES Price Int.Val. Rating
CYRN CYREN 2.35 0.07  str.sell
CUDA Barracuda Netw 27.55 15.18  sell

COMPANY NEWS

▶ Mimecast Announces Stephen Ward to Join Board of Directors   [Dec-18-17 04:05PM  GlobeNewswire]
▶ Some Secure Names in Cybersecurity   [Nov-20-17 02:00PM  TheStreet.com]
▶ Mimecast reports 2Q loss   [06:58PM  Associated Press]
▶ Mimecast Completes SOC 2 Type II Attestation   [Nov-07-17 06:31PM  GlobeNewswire]
▶ Mimecast to Present at the UBS Global Technology Conference   [Nov-02-17 08:00AM  GlobeNewswire]
▶ Hackers know humans are 'weakest links': Mimecast CEO   [Sep-20-17 07:14PM  CNBC Videos]
▶ Mimecast reports 1Q loss   [Aug-08-17 10:16PM  Associated Press]
▶ Mimecast Announces First Quarter 2018 Financial Results   [Aug-07-17 04:11PM  GlobeNewswire]
▶ Mimecast North America Announces Partnership with Insight   [Jun-28-17 08:30AM  GlobeNewswire]
▶ Mimecast reports 4Q loss   [May-09-17 05:21PM  Associated Press]
▶ Mimecast's Enterprise Potential Is Underappreciated   [Apr-13-17 09:57AM  Benzinga]
▶ Mimecast Announces New Board Member Aron Ain   [Apr-03-17 08:30AM  GlobeNewswire]
▶ Should You Buy Mimecast Ltd (MIME)?   [Dec-10-16 04:46PM  at Insider Monkey]
Financial statements of MIME
Follow us on:   twitter   twitter   twitter   twitter

ASSET ALLOCATION

About X-FIN       Site news       Privacy policy       Terms of use       FAQ

Copyright © X-FIN.com 2005-2018. All rigths reserved.