DCF Tool

CHKP

Check Point Software Technolgies – Software Publishers
Check Point Software Technologies Ltd. is a leading provider of cyber security solutions to governments and corporate enterprises globally. Its solutions protect customers from 5th generation cyber-attacks with an industry leading catch rate of malware, ransomware and other types of attacks. Check Point offers multilevel security architecture, “Infinity” Total Protection with Gen V advanced threat prevention, which defends enterprises’ cloud, network and mobile device held information. Check Point provides the most comprehensive and intuitive one point of control security management system. Check Point protects over 100,000 organizations of all sizes.
Analysis Results
Intrinsic Value $113.06
Latest Price $111.12
Relative Value 2% undervalued
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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 2.9%.

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 2.9%, 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 (million) Present value (million)
2022 728 681
2023 749 654
2024 771 629
2025 793 604
2026 815 581
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 16600 million. This corresponds to a present value of 11000 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3150 million. Adding in the terminal value gives a total present value of 14200 million.

There are presently 125.0 million outstanding shares, so the intrinsic value per share is 113.06.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,337,900,000
Current Cash 1,693,700,000
Current Liabilities 1,712,100,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,067,900,000
Change in NCWC -115,000,000
EBIT 907,500,000
Tax Provision 134,000,000
Depreciation and Amortization 30,700,000
Capital Expenditure -15,900,000
Unlevered Free Cash Flow 679,240,817
Current Assets 2,278,600,000
Current Cash 1,687,700,000
Current Liabilities 1,543,800,000
Current Debt 0
Non-Cash Working Capital (NCWC) -952,900,000
Change in NCWC -111,100,000
EBIT 904,200,000
Tax Provision 124,200,000
Depreciation and Amortization 27,100,000
Capital Expenditure -19,300,000
Unlevered Free Cash Flow 685,220,519
Current Assets 2,134,200,000
Current Cash 1,579,300,000
Current Liabilities 1,396,700,000
Current Debt 0
Non-Cash Working Capital (NCWC) -841,800,000
Change in NCWC -80,058,000
EBIT 881,800,000
Tax Provision 136,700,000
Depreciation and Amortization 24,000,000
Capital Expenditure -25,900,000
Unlevered Free Cash Flow 674,590,482
Current Assets 2,321,907,000
Current Cash 1,751,779,000
Current Liabilities 1,331,870,000
Current Debt 0
Non-Cash Working Capital (NCWC) -761,742,000
Change in NCWC -108,518,000
EBIT 913,774,000
Tax Provision 157,535,000
Depreciation and Amortization 20,788,000
Capital Expenditure -17,149,000
Unlevered Free Cash Flow 661,831,754
Current Assets 1,964,431,000
Current Cash 1,410,730,000
Current Liabilities 1,206,925,000
Current Debt 0
Non-Cash Working Capital (NCWC) -653,224,000
Change in NCWC -6,894,000
EBIT 923,917,000
Tax Provision 168,023,000
Depreciation and Amortization 16,636,000
Capital Expenditure -28,784,000
Unlevered Free Cash Flow 744,990,406
Current Assets 1,892,455,000
Current Cash 1,372,927,000
Current Liabilities 1,165,858,000
Current Debt 0
Non-Cash Working Capital (NCWC) -646,330,000
Change in NCWC -41,084,000
EBIT 852,270,000
Tax Provision 171,825,000
Depreciation and Amortization 14,736,000
Capital Expenditure -24,050,000
Unlevered Free Cash Flow 638,555,544
Current Assets 1,735,834,000
Current Cash 1,284,227,000
Current Liabilities 1,056,853,000
Current Debt 0
Non-Cash Working Capital (NCWC) -605,246,000
Change in NCWC -107,784,000
EBIT 839,717,000
Tax Provision 187,924,000
Depreciation and Amortization 13,970,000
Capital Expenditure -17,348,000
Unlevered Free Cash Flow 547,959,001
Current Assets 1,747,835,000
Current Cash 1,312,462,000
Current Liabilities 932,835,000
Current Debt 0
Non-Cash Working Capital (NCWC) -497,462,000
Change in NCWC 55,888,000
EBIT 801,054,000
Tax Provision 170,245,000
Depreciation and Amortization 11,284,000
Capital Expenditure -12,736,000
Unlevered Free Cash Flow 691,145,810
Current Assets 1,600,318,000
Current Cash 1,166,814,000
Current Liabilities 986,854,000
Current Debt 0
Non-Cash Working Capital (NCWC) -553,350,000
Change in NCWC -103,737,000
EBIT 760,905,000
Tax Provision 143,036,000
Depreciation and Amortization 11,565,000
Capital Expenditure -9,563,000
Unlevered Free Cash Flow 522,412,165
Current Assets 1,924,919,000
Current Cash 1,503,337,000
Current Liabilities 871,195,000
Current Debt 0
Non-Cash Working Capital (NCWC) -449,613,000
Change in NCWC -97,606,000
EBIT 746,535,000
Tax Provision 166,867,000
Depreciation and Amortization 14,889,000
Capital Expenditure -8,195,000
Unlevered Free Cash Flow 497,309,008

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