DCF Tool

CBZ

Cbiz Inc – Payroll Services
CBIZ, Inc. is a leading provider of financial, insurance and advisory services to businesses throughout the United States. Financial services include accounting, tax, transaction advisory, risk advisory, valuation services and government health care consulting. Insurance services include employee benefits consulting, retirement plan consulting, property and casualty insurance, payroll, and human capital consulting. With more than 100 Company offices in 31 states, CBIZ is one of the largest accounting and insurance brokerage providers in the U.S.
Analysis Results
Intrinsic Value $25.17
Latest Price $48.55
Relative Value 93% overvalued
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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 2.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 2.5%, 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 68.2 63.7
2023 69.9 60.9
2024 71.6 58.3
2025 73.4 55.7
2026 75.2 53.3
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1490 million. This corresponds to a present value of 987 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 292 million. Adding in the terminal value gives a total present value of 1280 million.

There are presently 50.8 million outstanding shares, so the intrinsic value per share is 25.17.

Financial Statements

The following data was to determine the past cash flows.

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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