CBZ Intrinsic Value

CBZ

Cbiz Inc – Payroll Services

named one of america’s 2015 best employers and ranked as the #1 employer in the consulting and accounting industry by forbes magazine, cbiz, inc. provides professional business services that help clients better manage their finances and employees. cbiz provides its clients with financial services including accounting, tax, financial advisory, government health care consulting, risk advisory, real estate consulting, and valuation services. employee services include employee benefits consulting, property and casualty insurance, retirement plan consulting, payroll, life insurance, hr consulting, and executive recruitment. as one of the nation’s largest brokers of employee benefits and property and casualty insurance, and one of the largest accounting and valuation companies in the united states, the company’s services are provided through more than 100 company offices in 33 states. cbiz is associated with mayer hoffman mccann p.c. (mhm)*, a national, independent cpa firm. through th

Analysis Results

Intrinsic Value	$27.35
Latest Price	$52.41
Relative Value	92% overvalued

Share results:

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Cash Flow (Millions)

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 4.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.1%, 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	77.3	71.7
2024	80.4	69.3
2025	83.7	66.9
2026	87.1	64.6
2027	90.7	62.4

Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1610 million. This corresponds to a present value of 1030 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 335 million. Adding in the terminal value gives a total present value of 1360 million.

There are presently 49.8 million outstanding shares, so the intrinsic value per share is 27.35.

Financial Statements

The following data was to determine the past cash flows.

Current Assets	568,426,000
Current Cash	4,697,000
Current Liabilities	512,407,000
Current Debt	0
Non-Cash Working Capital (NCWC)	51,322,000
Change in NCWC	24,934,000
EBIT	168,344,000
Tax Provision	36,121,000
Depreciation and Amortization	32,895,000
Capital Expenditure	-8,641,000
Unlevered Free Cash Flow	174,556,350

Current Assets	451,674,000
Current Cash	1,997,000
Current Liabilities	423,289,000
Current Debt	0
Non-Cash Working Capital (NCWC)	26,388,000
Change in NCWC	-27,117,000
EBIT	103,140,000
Tax Provision	22,129,000
Depreciation and Amortization	27,078,000
Capital Expenditure	-8,984,000
Unlevered Free Cash Flow	69,585,776

Current Assets	436,431,000
Current Cash	4,652,000
Current Liabilities	378,274,000
Current Debt	0
Non-Cash Working Capital (NCWC)	53,505,000
Change in NCWC	-36,022,000
EBIT	92,480,000
Tax Provision	25,141,000
Depreciation and Amortization	23,139,000
Capital Expenditure	-11,576,000
Unlevered Free Cash Flow	45,554,243

Current Assets	456,020,000
Current Cash	567,000
Current Liabilities	365,926,000
Current Debt	0
Non-Cash Working Capital (NCWC)	89,527,000
Change in NCWC	-12,057,000
EBIT	80,522,000
Tax Provision	21,840,000
Depreciation and Amortization	22,345,000
Capital Expenditure	-13,873,000
Unlevered Free Cash Flow	58,004,720

Current Assets	423,538,000
Current Cash	640,000
Current Liabilities	321,314,000
Current Debt	0
Non-Cash Working Capital (NCWC)	101,584,000
Change in NCWC	-13,780,000
EBIT	92,547,000
Tax Provision	18,267,000
Depreciation and Amortization	23,675,000
Capital Expenditure	-14,624,000
Unlevered Free Cash Flow	66,643,700

Current Assets	448,173,000
Current Cash	424,000
Current Liabilities	334,246,000
Current Debt	1,861,000
Non-Cash Working Capital (NCWC)	115,364,000
Change in NCWC	15,653,000
EBIT	66,461,000
Tax Provision	23,288,000
Depreciation and Amortization	23,061,000
Capital Expenditure	-11,892,000
Unlevered Free Cash Flow	72,457,599

Current Assets	441,592,000
Current Cash	3,494,000
Current Liabilities	339,447,000
Current Debt	1,060,000
Non-Cash Working Capital (NCWC)	99,711,000
Change in NCWC	-866,000
EBIT	65,787,000
Tax Provision	26,399,000
Depreciation and Amortization	22,098,000
Capital Expenditure	-4,141,000
Unlevered Free Cash Flow	56,959,261

Current Assets	372,480,000
Current Cash	850,000
Current Liabilities	271,053,000
Current Debt	0
Non-Cash Working Capital (NCWC)	100,577,000
Change in NCWC	16,638,000
EBIT	63,884,000
Tax Provision	22,829,000
Depreciation and Amortization	20,389,000
Capital Expenditure	-7,390,000
Unlevered Free Cash Flow	68,302,992

Current Assets	379,326,000
Current Cash	979,000
Current Liabilities	295,168,000
Current Debt	760,000
Non-Cash Working Capital (NCWC)	83,939,000
Change in NCWC	47,000
EBIT	55,496,000
Tax Provision	20,154,000
Depreciation and Amortization	19,831,000
Capital Expenditure	-4,837,000
Unlevered Free Cash Flow	48,418,933

Current Assets	350,475,000
Current Cash	771,000
Current Liabilities	267,414,000
Current Debt	1,602,000
Non-Cash Working Capital (NCWC)	83,892,000
Change in NCWC	-1,756,000
EBIT	48,905,000
Tax Provision	16,438,000
Depreciation and Amortization	18,884,000
Capital Expenditure	-6,208,000
Unlevered Free Cash Flow	40,419,771

Current Assets	350,197,000
Current Cash	899,000
Current Liabilities	269,867,000
Current Debt	6,217,000
Non-Cash Working Capital (NCWC)	85,648,000
Change in NCWC	7,128,000
EBIT	55,477,000
Tax Provision	19,328,000
Depreciation and Amortization	21,395,000
Capital Expenditure	-4,067,000
Unlevered Free Cash Flow	58,659,277

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