DCF Tool

EEFT

Euronet Worldwide Inc – Data Processing, Hosting, and Related Services
Euronet Worldwide is a leading global financial technology solutions and payments provider. The Company offers payment and transaction processing solutions to financial institutions, retailers, service providers and individual consumers. These services include comprehensive ATM, POS and card outsourcing services, card issuing and merchant acquiring services, software solutions, cash-based and online-initiated consumer-to-consumer and business-to-business money transfer services, and electronic distribution of prepaid mobile phone time and other prepaid products. Euronet's global payment network is extensive - including 43,956 ATMs, approximately 324,000 EFT POS terminals and a growing portfolio of outsourced debit and credit card services which are under management in 61 countries; card software solutions; a prepaid processing network of approximately 717,000 POS terminals at approximately 328,000 retailer locations in 55 countries; and a global money transfer network of approximately 447,000 locations serving 159 countries. With corporate headquarters in Leawood, Kansas, USA, and 66 worldwide offices, Euronet serves clients in approximately 175 countries.
Analysis Results
Intrinsic Value $195.16
Latest Price $102.48
Relative Value 47% undervalued
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Cash Flow (Billions)
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 17.8%.

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 17.8%, 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)
2022 0.37 0.342
2023 0.436 0.374
2024 0.513 0.408
2025 0.605 0.445
2026 0.713 0.485
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 12.1 billion. This corresponds to a present value of 7.62 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.05 billion. Adding in the terminal value gives a total present value of 9.68 billion.

There are presently 49.6 million outstanding shares, so the intrinsic value per share is 195.16.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,308,423,000
Current Cash 1,260,466,000
Current Liabilities 1,852,641,000
Current Debt 4,968,000
Non-Cash Working Capital (NCWC) 200,284,000
Change in NCWC 102,845,000
EBIT 222,650,000
Tax Provision 65,088,000
Depreciation and Amortization 135,754,000
Capital Expenditure -92,207,000
Unlevered Free Cash Flow 262,229,077
Current Assets 3,365,935,000
Current Cash 1,420,255,000
Current Liabilities 1,855,441,000
Current Debt 7,200,000
Non-Cash Working Capital (NCWC) 97,439,000
Change in NCWC -413,240,000
EBIT 153,224,000
Tax Provision 11,475,000
Depreciation and Amortization 127,021,000
Capital Expenditure -97,628,000
Unlevered Free Cash Flow -242,098,000
Current Assets 2,918,732,000
Current Cash 786,081,000
Current Liabilities 1,633,980,000
Current Debt 12,008,000
Non-Cash Working Capital (NCWC) 510,679,000
Change in NCWC 812,368,000
EBIT 475,194,000
Tax Provision 87,112,000
Depreciation and Amortization 111,744,000
Capital Expenditure -131,287,000
Unlevered Free Cash Flow 1,172,596,151
Current Assets 2,087,587,000
Current Cash 1,054,357,000
Current Liabilities 1,378,394,000
Current Debt 43,475,000
Non-Cash Working Capital (NCWC) -301,689,000
Change in NCWC -11,668,000
EBIT 364,846,000
Tax Provision 62,785,000
Depreciation and Amortization 106,021,000
Capital Expenditure -112,484,000
Unlevered Free Cash Flow 269,042,523
Current Assets 1,890,186,000
Current Cash 819,144,000
Current Liabilities 1,407,720,000
Current Debt 46,657,000
Non-Cash Working Capital (NCWC) -290,021,000
Change in NCWC 3,051,000
EBIT 300,101,000
Tax Provision 99,395,000
Depreciation and Amortization 95,030,000
Capital Expenditure -97,235,000
Unlevered Free Cash Flow 184,581,545
Current Assets 1,584,988,000
Current Cash 734,414,000
Current Liabilities 1,179,100,000
Current Debt 35,454,000
Non-Cash Working Capital (NCWC) -293,072,000
Change in NCWC -76,683,000
EBIT 249,773,000
Tax Provision 58,795,000
Depreciation and Amortization 80,529,000
Capital Expenditure -87,411,000
Unlevered Free Cash Flow 103,151,559
Current Assets 1,131,010,000
Current Cash 457,518,000
Current Liabilities 903,932,000
Current Debt 14,051,000
Non-Cash Working Capital (NCWC) -216,389,000
Change in NCWC -18,786,000
EBIT 204,841,000
Tax Provision 42,602,000
Depreciation and Amortization 70,025,000
Capital Expenditure -74,620,000
Unlevered Free Cash Flow 119,610,195
Current Assets 1,105,916,000
Current Cash 468,010,000
Current Liabilities 848,881,000
Current Debt 13,372,000
Non-Cash Working Capital (NCWC) -197,603,000
Change in NCWC -109,405,000
EBIT 158,685,000
Tax Provision 40,015,000
Depreciation and Amortization 71,455,000
Capital Expenditure -63,098,000
Unlevered Free Cash Flow 12,763,179
Current Assets 840,375,000
Current Cash 209,826,000
Current Liabilities 732,011,000
Current Debt 13,264,000
Non-Cash Working Capital (NCWC) -88,198,000
Change in NCWC -23,432,000
EBIT 117,723,000
Tax Provision 27,732,000
Depreciation and Amortization 65,053,000
Capital Expenditure -47,161,000
Unlevered Free Cash Flow 83,815,321
Current Assets 813,179,000
Current Cash 191,187,000
Current Liabilities 696,706,000
Current Debt 9,948,000
Non-Cash Working Capital (NCWC) -64,766,000
Change in NCWC -46,419,000
EBIT 87,687,000
Tax Provision 26,937,000
Depreciation and Amortization 64,167,000
Capital Expenditure -50,651,000
Unlevered Free Cash Flow 4,882,772

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