Allscripts Healthcare Solutions, Inc. provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. The last earnings update was 53 days ago. More info.
The calculations below outline how an intrinsic value for
Allscripts Healthcare Solutions
is arrived at by discounting future cash flows to their present value. We use
analyst's estimates of cash flows going forward 5 years.
See our documentation to learn about this calculation.
|Levered FCF (USD, Millions)||$85.22||$144.14||$170.13||$207.85||$244.90|
|Source||Analyst x5||Analyst x7||Analyst x3||Analyst x2||Analyst x2|
Discounted (@ 14.19%)
Present value of next 5 years cash flows:
Terminal Value = FCF2022 × (1 + g) ÷ (Discount Rate – g)
Terminal Value = $245 × (1 + 2.47%) ÷ (14.19% – 2.47%)
Terminal value based on the Perpetuity Method where growth (g) =
Present value of terminal value:
Equity Value (Total value) = Present value of next 5 years cash flows +
$1,651 = $548 + $1,103
Value = Total value / Shares Outstanding ($1,651 / 178)Discount to Share Price
Value per share (USD): $9.28
Current discount (share price of $12.53): -35.07%
The discount rate, or required rate of return, is estimated by calculating the Cost of Equity.
Discount rate = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
Discount rate = 14.19% = 2.47% + (1.556 * 7.53%)
The Levered Beta is the Unlevered Beta adjusted for financial leverage. It is limited to 0.8 to 2.0 (practical range for a stable firm). Note the market value of equity is used not the book value ($2,231,525,691).
Levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
1.556 = 0.887 (1 + (1- 2.7%) (77.5%))
Levered Beta used in calculation = 1.556
For companies that have on average been loss making in the past we analyse their runway based on operating expenses, which includes recurring G&A and R&D. Analysis based on the most recent financials.
Mr. Paul M. Black has been the Chief Executive Officer of Allscripts Healthcare Solutions, Inc. since December 19, 2012. Mr. Black serves as an Adjunct Professor of Businss at the University of Missouri – Kansas City. He served as the President of Allscripts Healthcare Solutions, Inc. from December 19, 2012 to October 2015. Mr. Black served as a Senior Advisor at New Mountain Capital, LLC. He served as an Operating Executive at Genstar Capital, LLC. He spent 13 years at Cerner Corporation, where Mr. Black served as the Chief Sales Officer, an Executive Vice President of United States Client Organization, from 2003 to August 31, 2007 and served as the Chief Operating Officer, from February 2005 to August 31, 2007, with responsibility for operations and sales, technologies, managed services and intellectual property organizations. He joined Cerner Corp. in March of 1994 as a Regional Vice President. Mr. Black served as Senior Vice President and the Chief Sales Officer, since June 1998 and Executive Vice President, since September 2000. He served a number of positions for 12 years at International Business Machines Corporation (IBM), from 1982 to 1994, including as a Sales and Professional Services Branch Executive. Mr. Black has been the Chairman of Aris Teleradiology LLC, since December 2011. He serves as Director of Saepio Technologies, Inc. and eResearch Technology, Inc. Mr. Black serves on the Board of Directors of Biotronic NeuroNetwork. Mr. Black has been a Director of Allscripts Healthcare Solutions, Inc. since May 16, 2012, Netsmart Technologies, Inc. since January 31, 2011. He serves as a Member of the Board of Directors of Truman Medical Center, Inc. since 2001, Inmar Holdings Inc., Saepio Technologies, Inc., and Connextions, Inc. He served as a Director of Haemonetics Corporation since January 26, 2011. Mr. Black served as a Member of Chief Executive Officer Advisory Board of Great Point Partners, LLC, since 2011. He served as the Chairman of Truman Medical Center, Inc. Mr. Black has an MBA with emphasis in Marketing and Industrial Relations from the University of Iowa and a B.S. from Iowa State University.
Average tenure and age of the Allscripts Healthcare Solutions management team in years:
Average tenure and age of the Allscripts Healthcare Solutions board of directors in years:
In this article I am going to calculate the intrinsic value of Allscripts Healthcare Solutions Inc (NASDAQ:MDRX) by estimating the company's future cash flows and discounting them to their present value. … 5-year cash flow forecast 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $147.68 $189.43 $208.77 $247.95 $266.35 Source Analyst x5 Analyst x4 Analyst x3 Analyst x2 Analyst x2 Present Value Discounted @ 12.92% $130.78 $148.55 $144.98 $152.49 $145.06 Present Value of 5-year Cash Flow (PVCF)= $722 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $266 × (1 + 2.5%) ÷ (12.9% – 2.5%) = $2,611 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $2,611 / ( 1 + 12.9%)5 = $1,422 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $2,144.Simply Wall St - – Full article
See our latest analysis for MDRX Is MDRX’s level of debt at an acceptable level? … In the case of MDRX, the debt-to-equity ratio is 90.39%, which indicates that the company is holding a high level of debt relative to its net worth. … To assess this, I compare MDRX's cash and other liquid assets against its upcoming debt.Simply Wall St - – Full article
Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at MDRX future expectations. … MDRX’s optimistic future growth appears to have been factored into the current share price, with shares trading above its fair value. … If you believe MDRX should trade below its current price, selling high and buying it back up again when its price falls towards its real value can be profitable.Simply Wall St - – Full article
Using the most recent financial data, I am going to take a look at whether the stock is fairly priced by taking the expected future cash flows and discounting them to their present value. … 5-year cash flow estimate 2017 2018 2019 2020 2021 Levered FCF (USD, Millions) $112.87 $160.10 $212.05 $229.50 $247.10 Source Analyst x6 Analyst x5 Analyst x2 Analyst x2 Analyst x2 Present Value Discounted @ 14.88% $98.25 $121.31 $139.86 $131.76 $123.49 Present Value of 5-year Cash Flow (PVCF)= $615 After calculating the present value of future cash flows in the intial 5-year period we need to calculate the Terminal Value, which accounts for all the future cash flows beyond the first stage. … Terminal Value (TV) = FCF2021 × (1 + g) ÷ (r – g) = $247 × (1 + 2.5%) ÷ (14.9% – 2.5%) = $2,040 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $2,040 / ( 1 + 14.9%)5 = $1,020 The total value, or equity value, is then the sum of the present value of the cash flows, which in this case is $1,634.Simply Wall St - – Full article
Allscripts Healthcare Solutions, Inc. provides information technology solutions and services to healthcare organizations in the United States, Canada, and internationally. It offers electronic health records, connectivity, private cloud hosting, outsourcing, analytics, patient engagement, clinical decision support, and population health management solutions. The company’s Clinical and Financial Solutions segment provides integrated clinical software applications and financial and information solutions, which primarily include EHR-related, and financial and practice management software solutions, as well as related installation, support and maintenance, outsourcing, private cloud hosting, revenue cycle management, training, and electronic claims administration services. Its Population Health segment offers health management and coordinated care solutions that enable hospitals, health systems, accountable care organizations, and other care facilities to connect, transition, analyze, and coordinate care across the entire care community. The company’s Netsmart segment operates in and provides software and technology solutions to the health and human services, and post-acute sectors of health care. The company serves physicians, hospitals, governments, health systems, health plans, life-sciences companies, retail clinics, retail pharmacies, pharmacy benefit managers, insurance companies, and employer wellness clinics, as well as post-acute organizations, such as home health and hospice agencies. Allscripts Healthcare Solutions, Inc. was founded in 1986 and is headquartered in Chicago, Illinois.
|Name:||Allscripts Healthcare Solutions, Inc.|
Allscripts Healthcare Solutions, Inc.
222 Merchandise Mart Plaza,
|Exchange Symbol||Ticker Symbol||Security||Exchange||Country||Currency||Listed on|
|NasdaqGS||MDRX||Common Shares||Nasdaq Global Select||US||USD||14. Mar 2006|
|DB||AL21||Common Shares||Deutsche Boerse AG||DE||EUR||14. Mar 2006|
|Health Care Technology|
|Area||Date (UTC time)|
|Company Analysis updated:||2018/05/23 04:08|
|End of day share price update:||2018/05/22 00:00|
|Last estimates confirmation:||2018/05/05|
|Last earnings update:||2018/03/31|
|Last annual earnings update:||2017/12/31|
All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.