DCF Tool

ASGN

ASGN Inc – Employment Placement Agencies
ECS, a segment of ASGN, delivers advanced solutions in cloud, cybersecurity, artificial intelligence (AI), machine learning (ML), application and IT modernization, science, and engineering. The company solves critical, complex challenges for customers across the U.S. public sector, defense, intelligence, and commercial industries. ECS maintains partnerships with leading cloud, cybersecurity, and AI/ML providers and holds specialized certifications in their technologies. Headquartered in Fairfax, Virginia, ECS has more than 3,000 employees throughout the United States.
Analysis Results
Intrinsic Value $143.43
Latest Price $90.37
Relative Value 37% 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 11.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.6%, 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 381 351
2023 425 360
2024 474 370
2025 529 380
2026 591 390
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9030 million. This corresponds to a present value of 5480 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1850 million. Adding in the terminal value gives a total present value of 7330 million.

There are presently 51.1 million outstanding shares, so the intrinsic value per share is 143.43.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,309,400,000
Current Cash 529,600,000
Current Liabilities 450,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 328,900,000
Change in NCWC 25,100,000
EBIT 350,900,000
Tax Provision 81,600,000
Depreciation and Amortization 89,600,000
Capital Expenditure -34,700,000
Unlevered Free Cash Flow 339,536,119
Current Assets 994,400,000
Current Cash 274,400,000
Current Liabilities 416,200,000
Current Debt 0
Non-Cash Working Capital (NCWC) 303,800,000
Change in NCWC -51,600,000
EBIT 310,400,000
Tax Provision 70,400,000
Depreciation and Amortization 89,700,000
Capital Expenditure -32,600,000
Unlevered Free Cash Flow 235,175,360
Current Assets 791,500,000
Current Cash 95,200,000
Current Liabilities 340,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 355,400,000
Change in NCWC 19,103,000
EBIT 308,600,000
Tax Provision 62,000,000
Depreciation and Amortization 91,200,000
Capital Expenditure -32,700,000
Unlevered Free Cash Flow 305,404,013
Current Assets 686,372,000
Current Cash 41,826,000
Current Liabilities 308,249,000
Current Debt 0
Non-Cash Working Capital (NCWC) 336,297,000
Change in NCWC 40,158,000
EBIT 260,148,000
Tax Provision 46,191,000
Depreciation and Amortization 94,975,000
Capital Expenditure -28,701,000
Unlevered Free Cash Flow 307,726,093
Current Assets 499,523,000
Current Cash 36,667,000
Current Liabilities 166,717,000
Current Debt 0
Non-Cash Working Capital (NCWC) 296,139,000
Change in NCWC 48,158,000
EBIT 224,736,000
Tax Provision 39,219,000
Depreciation and Amortization 58,604,000
Capital Expenditure -24,265,000
Unlevered Free Cash Flow 262,513,394
Current Assets 437,524,000
Current Cash 27,044,000
Current Liabilities 162,499,000
Current Debt 0
Non-Cash Working Capital (NCWC) 247,981,000
Change in NCWC 17,992,000
EBIT 189,726,000
Tax Provision 60,203,000
Depreciation and Amortization 62,249,000
Capital Expenditure -27,138,000
Unlevered Free Cash Flow 170,261,357
Current Assets 414,208,000
Current Cash 23,869,000
Current Liabilities 160,350,000
Current Debt 0
Non-Cash Working Capital (NCWC) 229,989,000
Change in NCWC 23,115,000
EBIT 152,108,000
Tax Provision 50,491,000
Depreciation and Amortization 51,569,000
Capital Expenditure -24,689,000
Unlevered Free Cash Flow 139,106,559
Current Assets 385,904,000
Current Cash 31,714,000
Current Liabilities 165,566,000
Current Debt 18,250,000
Non-Cash Working Capital (NCWC) 206,874,000
Change in NCWC 53,371,000
EBIT 146,270,000
Tax Provision 54,527,000
Depreciation and Amortization 38,296,000
Capital Expenditure -19,729,000
Unlevered Free Cash Flow 158,483,091
Current Assets 349,874,000
Current Cash 37,350,000
Current Liabilities 169,021,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 153,503,000
Change in NCWC -4,048,000
EBIT 123,968,000
Tax Provision 38,792,000
Depreciation and Amortization 29,882,000
Capital Expenditure -16,531,000
Unlevered Free Cash Flow 81,643,286
Current Assets 293,757,000
Current Cash 27,479,000
Current Liabilities 118,727,000
Current Debt 10,000,000
Non-Cash Working Capital (NCWC) 157,551,000
Change in NCWC 97,685,000
EBIT 92,779,000
Tax Provision 32,303,000
Depreciation and Amortization 24,702,000
Capital Expenditure -14,354,000
Unlevered Free Cash Flow 160,828,008

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