DCF Tool

ARC

ARC Document Solutions Inc – Commercial Printing (except Screen and Books)
ARC provides a wide variety of document distribution and graphic production services to facilitate communication for professionals in the design, marketing, commercial real estate, construction and related fields.
Analysis Results
Intrinsic Value $9.84
Latest Price $2.95
Relative Value 70% 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 -6.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -6.7%, 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)
2023 23.3 22.0
2024 21.7 19.4
2025 20.3 17.2
2026 18.9 15.1
2027 17.7 13.4
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 479 million. This corresponds to a present value of 342 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 87.1 million. Adding in the terminal value gives a total present value of 430 million.

There are presently 43.6 million outstanding shares, so the intrinsic value per share is 9.84.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 107,477,000
Current Cash 52,561,000
Current Liabilities 72,571,000
Current Debt 11,558,000
Non-Cash Working Capital (NCWC) -6,097,000
Change in NCWC -1,066,000
EBIT 18,356,000
Tax Provision 5,832,000
Depreciation and Amortization 20,425,000
Capital Expenditure -5,881,000
Unlevered Free Cash Flow 25,393,608
Current Assets 112,544,000
Current Cash 55,929,000
Current Liabilities 75,462,000
Current Debt 13,816,000
Non-Cash Working Capital (NCWC) -5,031,000
Change in NCWC -138,000
EBIT 15,129,000
Tax Provision 4,181,000
Depreciation and Amortization 24,556,000
Capital Expenditure -3,554,000
Unlevered Free Cash Flow 31,135,874
Current Assets 108,747,000
Current Cash 54,950,000
Current Liabilities 76,247,000
Current Debt 17,557,000
Non-Cash Working Capital (NCWC) -4,893,000
Change in NCWC -12,551,000
EBIT 12,393,000
Tax Provision 2,749,000
Depreciation and Amortization 30,360,000
Capital Expenditure -6,440,000
Unlevered Free Cash Flow 19,773,665
Current Assets 106,383,000
Current Cash 29,425,000
Current Liabilities 86,375,000
Current Debt 17,075,000
Non-Cash Working Capital (NCWC) 7,658,000
Change in NCWC -19,466,000
EBIT 14,768,000
Tax Provision 5,724,000
Depreciation and Amortization 31,904,000
Capital Expenditure -12,885,000
Unlevered Free Cash Flow 4,450,375
Current Assets 115,375,000
Current Cash 29,433,000
Current Liabilities 80,950,000
Current Debt 22,132,000
Non-Cash Working Capital (NCWC) 27,124,000
Change in NCWC -5,191,000
EBIT 17,860,000
Tax Provision 3,334,000
Depreciation and Amortization 32,887,000
Capital Expenditure -14,930,000
Unlevered Free Cash Flow 25,688,993
Current Assets 114,481,000
Current Cash 28,059,000
Current Liabilities 74,898,000
Current Debt 20,791,000
Non-Cash Working Capital (NCWC) 32,315,000
Change in NCWC -1,111,000
EBIT 17,854,000
Tax Provision 15,244,000
Depreciation and Amortization 33,323,000
Capital Expenditure -9,106,000
Unlevered Free Cash Flow 40,960,000
Current Assets 111,804,000
Current Cash 25,239,000
Current Liabilities 66,912,000
Current Debt 13,773,000
Non-Cash Working Capital (NCWC) 33,426,000
Change in NCWC 2,984,000
EBIT 28,196,000
Tax Provision -4,364,000
Depreciation and Amortization 31,751,000
Capital Expenditure -12,097,000
Unlevered Free Cash Flow 50,834,000
Current Assets 109,706,000
Current Cash 23,963,000
Current Liabilities 69,675,000
Current Debt 14,374,000
Non-Cash Working Capital (NCWC) 30,442,000
Change in NCWC 4,445,000
EBIT 35,202,000
Tax Provision -69,432,000
Depreciation and Amortization 33,661,000
Capital Expenditure -14,245,000
Unlevered Free Cash Flow 59,063,000
Current Assets 112,057,000
Current Cash 22,636,000
Current Liabilities 91,393,000
Current Debt 27,969,000
Non-Cash Working Capital (NCWC) 25,997,000
Change in NCWC 3,154,000
EBIT 30,619,000
Tax Provision 2,348,000
Depreciation and Amortization 34,135,000
Capital Expenditure -13,269,000
Unlevered Free Cash Flow 47,287,183
Current Assets 106,430,000
Current Cash 27,362,000
Current Liabilities 77,725,000
Current Debt 21,500,000
Non-Cash Working Capital (NCWC) 22,843,000
Change in NCWC -3,049,000
EBIT 30,925,000
Tax Provision 2,986,000
Depreciation and Amortization 34,745,000
Capital Expenditure -18,191,000
Unlevered Free Cash Flow 44,430,000
Current Assets 104,223,000
Current Cash 28,021,000
Current Liabilities 63,573,000
Current Debt 13,263,000
Non-Cash Working Capital (NCWC) 25,892,000
Change in NCWC -4,081,000
EBIT 19,411,000
Tax Provision 2,784,000
Depreciation and Amortization 39,522,000
Capital Expenditure -20,348,000
Unlevered Free Cash Flow 34,504,000

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