BR Intrinsic Value

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	$556.19
Latest Price	$136.96
Relative Value	75% undervalued

Share results:

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Cash Flow (Billions)

Analysis Parameters

New Ticker

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 18.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.4%, 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)
2023	1.19	1.15
2024	1.4	1.32
2025	1.66	1.51
2026	1.97	1.73
2027	2.33	1.99

Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 69.9 billion. This corresponds to a present value of 57.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.7 billion. Adding in the terminal value gives a total present value of 65.5 billion.

There are presently 118.0 million outstanding shares, so the intrinsic value per share is 556.19.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	1,328,400,000
Current Cash	224,700,000
Current Liabilities	1,313,300,000
Current Debt	0
Non-Cash Working Capital (NCWC)	-209,600,000
Change in NCWC	91,700,000
EBIT	759,900,000
Tax Provision	133,200,000
Depreciation and Amortization	464,000,000
Capital Expenditure	-73,100,000
Unlevered Free Cash Flow	1,091,921,779

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	-75,500,000
Unlevered Free Cash Flow	325,145,349

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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