DCF Tool


Geo Group, Inc. – Facilities Support Services
The GEO Group (NYSE: GEO) is a fully integrated equity real estate investment trust specializing in the design, financing, development, and operation of secure facilities, processing centers, and community reentry centers in the United States, Australia, South Africa, and the United Kingdom. GEO is a leading provider of enhanced in-custody rehabilitation, post-release support, electronic monitoring, and community-based programs. GEO's worldwide operations include the ownership and/or management of 123 facilities totaling approximately 93,000 beds, including projects under development, with a workforce of approximately 23,000 professionals.
Analysis Results
Intrinsic Value $54.65
Latest Price $7.66
Relative Value 86% undervalued
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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 5.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.3%, 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 272 256
2024 287 254
2025 302 252
2026 318 250
2027 335 248
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 8080 million. This corresponds to a present value of 5630 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1260 million. Adding in the terminal value gives a total present value of 6890 million.

There are presently 126.0 million outstanding shares, so the intrinsic value per share is 54.65.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 555,008,000
Current Cash 95,073,000
Current Liabilities 437,212,000
Current Debt 44,722,000
Non-Cash Working Capital (NCWC) 67,445,000
Change in NCWC -9,698,000
EBIT 387,873,000
Tax Provision 62,899,000
Depreciation and Amortization 132,925,000
Capital Expenditure -90,026,000
Unlevered Free Cash Flow 317,076,728
Current Assets 943,908,000
Current Cash 506,491,000
Current Liabilities 378,842,000
Current Debt 18,568,000
Non-Cash Working Capital (NCWC) 77,143,000
Change in NCWC 34,460,000
EBIT 295,224,000
Tax Provision 122,730,000
Depreciation and Amortization 135,177,000
Capital Expenditure -69,394,000
Unlevered Free Cash Flow 214,269,270
Current Assets 711,323,000
Current Cash 283,524,000
Current Liabilities 411,296,000
Current Debt 26,180,000
Non-Cash Working Capital (NCWC) 42,683,000
Change in NCWC -100,912,000
EBIT 252,886,000
Tax Provision 20,463,000
Depreciation and Amortization 134,680,000
Capital Expenditure -108,800,000
Unlevered Free Cash Flow 139,031,500
Current Assets 547,778,000
Current Cash 32,463,000
Current Liabilities 395,928,000
Current Debt 24,208,000
Non-Cash Working Capital (NCWC) 143,595,000
Change in NCWC -53,701,000
EBIT 309,945,000
Tax Provision 16,648,000
Depreciation and Amortization 130,825,000
Capital Expenditure -117,244,000
Unlevered Free Cash Flow 241,637,715
Current Assets 591,107,000
Current Cash 31,255,000
Current Liabilities 694,583,000
Current Debt 332,027,000
Non-Cash Working Capital (NCWC) 197,296,000
Change in NCWC 39,607,000
EBIT 274,292,000
Tax Provision 14,117,000
Depreciation and Amortization 126,434,000
Capital Expenditure -195,666,000
Unlevered Free Cash Flow 220,305,085
Current Assets 579,709,000
Current Cash 81,377,000
Current Liabilities 369,563,000
Current Debt 28,920,000
Non-Cash Working Capital (NCWC) 157,689,000
Change in NCWC -205,949,000
EBIT 260,330,000
Tax Provision 17,958,000
Depreciation and Amortization 124,297,000
Capital Expenditure -148,406,000
Unlevered Free Cash Flow 1,762,735
Current Assets 697,669,000
Current Cash 68,038,000
Current Liabilities 504,058,000
Current Debt 238,065,000
Non-Cash Working Capital (NCWC) 363,638,000
Change in NCWC 246,413,000
EBIT 272,509,000
Tax Provision 7,904,000
Depreciation and Amortization 114,916,000
Capital Expenditure -81,565,000
Unlevered Free Cash Flow 538,501,365
Current Assets 438,346,000
Current Cash 59,638,000
Current Liabilities 278,624,000
Current Debt 17,141,000
Non-Cash Working Capital (NCWC) 117,225,000
Change in NCWC 18,479,000
EBIT 241,262,000
Tax Provision 7,389,000
Depreciation and Amortization 106,756,000
Capital Expenditure -117,581,000
Unlevered Free Cash Flow 236,764,423
Current Assets 377,406,000
Current Cash 41,337,000
Current Liabilities 254,075,000
Current Debt 16,752,000
Non-Cash Working Capital (NCWC) 98,746,000
Change in NCWC -32,512,000
EBIT 240,554,000
Tax Provision 14,093,000
Depreciation and Amortization 96,171,000
Capital Expenditure -114,224,000
Unlevered Free Cash Flow 168,523,394
Current Assets 384,345,000
Current Cash 52,125,000
Current Liabilities 223,125,000
Current Debt 22,163,000
Non-Cash Working Capital (NCWC) 131,258,000
Change in NCWC 31,819,000
EBIT 191,749,000
Tax Provision -26,050,000
Depreciation and Amortization 94,664,000
Capital Expenditure -117,566,000
Unlevered Free Cash Flow 200,666,000
Current Assets 337,183,000
Current Cash 31,755,000
Current Liabilities 259,871,000
Current Debt 53,882,000
Non-Cash Working Capital (NCWC) 99,439,000
Change in NCWC -79,985,000
EBIT 187,931,000
Tax Provision -40,562,000
Depreciation and Amortization 91,685,000
Capital Expenditure -107,549,000
Unlevered Free Cash Flow 92,082,000

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