DCF Tool

FCN

FTI Consulting Inc. – Payroll Services
FTI Consulting, Inc. is a global business advisory firm dedicated to helping organizations manage change, mitigate risk and resolve disputes: financial, legal, operational, political & regulatory, reputational and transactional. With more than 6,300 employees located in 28 countries, FTI Consulting professionals work closely with clients to anticipate, illuminate and overcome complex business challenges and make the most of opportunities. The Company generated $2.46 billion in revenues during fiscal year 2020.
Analysis Results
Intrinsic Value $239.59
Latest Price $165.71
Relative Value 31% 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 8.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.7%, 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 234 222
2023 254 228
2024 276 236
2025 300 243
2026 326 251
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9740 million. This corresponds to a present value of 7100 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1180 million. Adding in the terminal value gives a total present value of 8280 million.

There are presently 34.5 million outstanding shares, so the intrinsic value per share is 239.59.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,370,027,000
Current Cash 494,485,000
Current Liabilities 718,116,000
Current Debt 0
Non-Cash Working Capital (NCWC) 157,426,000
Change in NCWC -7,157,000
EBIT 312,048,000
Tax Provision 62,981,000
Depreciation and Amortization 45,092,000
Capital Expenditure -68,665,000
Unlevered Free Cash Flow 215,356,285
Current Assets 1,129,707,000
Current Cash 294,953,000
Current Liabilities 670,171,000
Current Debt 0
Non-Cash Working Capital (NCWC) 164,583,000
Change in NCWC -32,168,000
EBIT 289,766,000
Tax Provision 51,764,000
Depreciation and Amortization 32,661,000
Capital Expenditure -34,866,000
Unlevered Free Cash Flow 198,240,491
Current Assets 1,178,661,000
Current Cash 369,373,000
Current Liabilities 612,537,000
Current Debt 0
Non-Cash Working Capital (NCWC) 196,751,000
Change in NCWC 26,037,000
EBIT 305,595,000
Tax Provision 71,724,000
Depreciation and Amortization 30,153,000
Capital Expenditure -42,072,000
Unlevered Free Cash Flow 243,725,841
Current Assets 965,353,000
Current Cash 312,069,000
Current Liabilities 482,570,000
Current Debt 0
Non-Cash Working Capital (NCWC) 170,714,000
Change in NCWC -23,176,000
EBIT 226,005,000
Tax Provision 57,181,000
Depreciation and Amortization 31,536,000
Capital Expenditure -32,270,000
Unlevered Free Cash Flow 139,902,076
Current Assets 794,179,000
Current Cash 189,961,000
Current Liabilities 410,328,000
Current Debt 0
Non-Cash Working Capital (NCWC) 193,890,000
Change in NCWC 5,332,000
EBIT 151,887,000
Tax Provision -20,857,000
Depreciation and Amortization 31,177,000
Capital Expenditure -32,004,000
Unlevered Free Cash Flow 156,392,000
Current Assets 783,171,000
Current Cash 216,158,000
Current Liabilities 378,455,000
Current Debt 0
Non-Cash Working Capital (NCWC) 188,558,000
Change in NCWC -56,230,000
EBIT 154,765,000
Tax Provision 42,283,000
Depreciation and Amortization 38,700,000
Capital Expenditure -28,935,000
Unlevered Free Cash Flow 57,096,753
Current Assets 741,625,000
Current Cash 149,760,000
Current Liabilities 347,077,000
Current Debt 0
Non-Cash Working Capital (NCWC) 244,788,000
Change in NCWC 387,000
EBIT 163,311,000
Tax Provision 39,333,000
Depreciation and Amortization 31,392,000
Capital Expenditure -31,399,000
Unlevered Free Cash Flow 102,738,771
Current Assets 884,173,000
Current Cash 283,680,000
Current Liabilities 367,092,000
Current Debt 11,000,000
Non-Cash Working Capital (NCWC) 244,401,000
Change in NCWC 24,689,000
EBIT 162,089,000
Tax Provision 42,604,000
Depreciation and Amortization 35,126,000
Capital Expenditure -39,256,000
Unlevered Free Cash Flow 114,552,430
Current Assets 803,861,000
Current Cash 205,833,000
Current Liabilities 384,330,000
Current Debt 6,014,000
Non-Cash Working Capital (NCWC) 219,712,000
Change in NCWC 298,000
EBIT 192,736,000
Tax Provision 42,405,000
Depreciation and Amortization 32,638,000
Capital Expenditure -42,544,000
Unlevered Free Cash Flow 140,723,000
Current Assets 674,375,000
Current Cash 156,785,000
Current Liabilities 304,197,000
Current Debt 6,021,000
Non-Cash Working Capital (NCWC) 219,414,000
Change in NCWC 57,339,000
EBIT 195,916,000
Tax Provision 40,100,000
Depreciation and Amortization 33,919,000
Capital Expenditure -27,759,000
Unlevered Free Cash Flow 219,315,000

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