BR Intrinsic Value

BR

Broadridge Financial Solutions, Inc. – Data Processing, Hosting, and Related Services

broadridge financial solutions, inc. is the leading provider of investor communications and technology-driven solutions for wealth management, asset management and capital markets firms. we help drive operational excellence to manage risk, accelerate growth and deliver real business value. our combination of people, technology and insights makes us an industry leader and the preferred partner for financial institutions and corporate issuers worldwide. because of our unique vantage point, working with institutions and regulators across the financial services landscape, the industry increasingly looks to broadridge to identify key industry trends, best practices and insights. looking ahead, we will deliver unique value to our clients by helping them address three disruptive trends: digitization of communications; mutualization of capabilities; and, rapidly evolving data and analytics (big data). contact us to learn more.

Analysis Results

Intrinsic Value	$330.99
Latest Price	$185.16
Relative Value	44% undervalued

Share results:

Thoughts on this result? Let us know.

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 18.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 18.9%, 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)
2024	1.44	1.33
2025	1.71	1.47
2026	2.03	1.61
2027	2.42	1.78
2028	2.87	1.96

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 49.0 billion. This corresponds to a present value of 30.9 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.15 billion. Adding in the terminal value gives a total present value of 39.1 billion.

There are presently 118.0 million outstanding shares, so the intrinsic value per share is 330.99.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	1,392,500,000
Current Cash	252,300,000
Current Liabilities	2,397,800,000
Current Debt	1,178,500,000
Non-Cash Working Capital (NCWC)	-79,100,000
Change in NCWC	130,500,000
EBIT	936,400,000
Tax Provision	164,300,000
Depreciation and Amortization	425,000,000
Capital Expenditure	-75,200,000
Unlevered Free Cash Flow	1,223,152,987

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

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.