DCF Tool

BR

Broadridge Financial Solutions, Inc. – Data Processing, Hosting, and Related Services
Broadridge Financial Solutions, a global Fintech leader with over $4.5 billion in revenues, provides the critical infrastructure that powers investing, corporate governance, and communications to enable better financial lives. Broadridge delivers technology-driven solutions to banks, broker-dealers, asset and wealth managers and public companies. Broadridge's infrastructure serves as a global communications hub enabling corporate governance by linking thousands of public companies and mutual funds to tens of millions of individual and institutional investors around the world. In addition, Broadridge's technology and operations platforms underpin the daily trading of on average more than U.S. $10 trillion of equities, fixed income and other securities globally. A certified Great Place to Work®, Broadridge is a part of the S&P 500® Index, employing over 12,000 associates in 17 countries.
Analysis Results
Intrinsic Value $172.89
Latest Price $138.98
Relative Value 20% undervalued
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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 12.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.3%, 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)
2022 0.764 0.713
2023 0.857 0.748
2024 0.963 0.785
2025 1.08 0.823
2026 1.21 0.864
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 24.6 billion. This corresponds to a present value of 16.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.93 billion. Adding in the terminal value gives a total present value of 20.3 billion.

There are presently 117.0 million outstanding shares, so the intrinsic value per share is 172.89.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,261,200,000
Current Cash 274,500,000
Current Liabilities 1,288,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -301,300,000
Change in NCWC -211,300,000
EBIT 678,600,000
Tax Provision 148,600,000
Depreciation and Amortization 334,700,000
Capital Expenditure -100,700,000
Unlevered Free Cash Flow 556,415,000
Current Assets 1,328,000,000
Current Cash 476,600,000
Current Liabilities 1,341,300,000
Current Debt 399,900,000
Non-Cash Working Capital (NCWC) -90,000,000
Change in NCWC -56,600,000
EBIT 624,900,000
Tax Provision 117,000,000
Depreciation and Amortization 299,300,000
Capital Expenditure -98,700,000
Unlevered Free Cash Flow 642,733,822
Current Assets 1,042,400,000
Current Cash 273,200,000
Current Liabilities 802,600,000
Current Debt 0
Non-Cash Working Capital (NCWC) -33,400,000
Change in NCWC 16,900,000
EBIT 652,800,000
Tax Provision 125,100,000
Depreciation and Amortization 260,000,000
Capital Expenditure -72,600,000
Unlevered Free Cash Flow 722,627,284
Current Assets 991,100,000
Current Cash 264,000,000
Current Liabilities 777,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) -50,300,000
Change in NCWC -23,700,000
EBIT 592,200,000
Tax Provision 133,100,000
Depreciation and Amortization 212,000,000
Capital Expenditure -97,900,000
Unlevered Free Cash Flow 542,122,687
Current Assets 989,600,000
Current Cash 271,200,000
Current Liabilities 745,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -26,600,000
Change in NCWC -19,900,000
EBIT 526,400,000
Tax Provision 161,400,000
Depreciation and Amortization 173,100,000
Capital Expenditure -113,700,000
Unlevered Free Cash Flow 391,870,995
Current Assets 1,289,100,000
Current Cash 727,800,000
Current Liabilities 692,900,000
Current Debt 124,900,000
Non-Cash Working Capital (NCWC) -6,700,000
Change in NCWC -35,000,000
EBIT 495,100,000
Tax Provision 161,400,000
Depreciation and Amortization 111,000,000
Capital Expenditure -39,900,000
Unlevered Free Cash Flow 360,745,349
Current Assets 861,400,000
Current Cash 324,200,000
Current Liabilities 508,900,000
Current Debt 0
Non-Cash Working Capital (NCWC) 28,300,000
Change in NCWC -20,200,000
EBIT 463,700,000
Tax Provision 151,800,000
Depreciation and Amortization 104,300,000
Capital Expenditure -66,000,000
Unlevered Free Cash Flow 321,422,556
Current Assets 880,600,000
Current Cash 347,700,000
Current Liabilities 484,400,000
Current Debt 0
Non-Cash Working Capital (NCWC) 48,500,000
Change in NCWC -23,000,000
EBIT 420,600,000
Tax Provision 132,500,000
Depreciation and Amortization 97,400,000
Capital Expenditure -53,400,000
Unlevered Free Cash Flow 300,691,024
Current Assets 807,000,000
Current Cash 266,000,000
Current Liabilities 469,500,000
Current Debt 0
Non-Cash Working Capital (NCWC) 71,500,000
Change in NCWC 24,900,000
EBIT 339,400,000
Tax Provision 111,100,000
Depreciation and Amortization 93,400,000
Capital Expenditure -50,900,000
Unlevered Free Cash Flow 290,131,250
Current Assets 777,400,000
Current Cash 320,500,000
Current Liabilities 410,300,000
Current Debt 0
Non-Cash Working Capital (NCWC) 46,600,000
Change in NCWC -80,600,000
EBIT 288,500,000
Tax Provision 75,900,000
Depreciation and Amortization 92,000,000
Capital Expenditure -46,700,000
Unlevered Free Cash Flow 144,204,728

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