DCF Tool

GPN

Global Payments, Inc. – Data Processing, Hosting, and Related Services
Global Payments Inc. is a leading pure play payments technology company delivering innovative software and services to its customers globally. Its technologies, services and employee expertise enable the company to provide a broad range of solutions that allow its customers to operate their businesses more efficiently across a variety of channels around the world.
Analysis Results
Intrinsic Value $481.08
Latest Price $122.10
Relative Value 75% 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 34.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 34.3%, 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 (billion) Present value (billion)
2022 2.8 2.61
2023 3.75 3.26
2024 5.04 4.08
2025 6.77 5.1
2026 9.09 6.38
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 174 billion. This corresponds to a present value of 114 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 21.4 billion. Adding in the terminal value gives a total present value of 135 billion.

There are presently 282.0 million outstanding shares, so the intrinsic value per share is 481.08.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,710,985,000
Current Cash 1,979,308,000
Current Liabilities 4,463,014,000
Current Debt 562,707,000
Non-Cash Working Capital (NCWC) -1,168,630,000
Change in NCWC -452,086,000
EBIT 1,471,229,000
Tax Provision 169,034,000
Depreciation and Amortization 1,691,384,000
Capital Expenditure -493,216,000
Unlevered Free Cash Flow 2,002,350,197
Current Assets 4,592,360,000
Current Cash 1,945,868,000
Current Liabilities 4,549,091,000
Current Debt 1,186,055,000
Non-Cash Working Capital (NCWC) -716,544,000
Change in NCWC -323,747,000
EBIT 982,250,000
Tax Provision 77,153,000
Depreciation and Amortization 1,614,440,000
Capital Expenditure -436,236,000
Unlevered Free Cash Flow 1,725,628,654
Current Assets 4,366,448,000
Current Cash 1,678,273,000
Current Liabilities 3,579,346,000
Current Debt 498,374,000
Non-Cash Working Capital (NCWC) -392,797,000
Change in NCWC -105,068,000
EBIT 804,958,000
Tax Provision 62,190,000
Depreciation and Amortization 878,335,000
Capital Expenditure -307,868,000
Unlevered Free Cash Flow 1,176,164,073
Current Assets 3,376,208,000
Current Cash 1,210,878,000
Current Liabilities 3,268,620,000
Current Debt 815,561,000
Non-Cash Working Capital (NCWC) -287,729,000
Change in NCWC -175,337,000
EBIT 737,055,000
Tax Provision 77,488,000
Depreciation and Amortization 522,813,000
Capital Expenditure -213,290,000
Unlevered Free Cash Flow 769,644,611
Current Assets 4,303,579,000
Current Cash 1,335,855,000
Current Liabilities 3,815,590,000
Current Debt 735,474,000
Non-Cash Working Capital (NCWC) -112,392,000
Change in NCWC -2,248,000
EBIT 558,868,000
Tax Provision -101,387,000
Depreciation and Amortization 451,151,000
Capital Expenditure -181,905,000
Unlevered Free Cash Flow 825,866,000
Current Assets 2,851,313,000
Current Cash 1,044,728,000
Current Liabilities 2,430,707,000
Current Debt 513,978,000
Non-Cash Working Capital (NCWC) -110,144,000
Change in NCWC -400,925,000
EBIT 424,944,000
Tax Provision 70,695,000
Depreciation and Amortization 187,881,000
Capital Expenditure -91,591,000
Unlevered Free Cash Flow 37,071,490
Current Assets 3,302,295,000
Current Cash 650,739,000
Current Liabilities 3,015,904,000
Current Debt 655,129,000
Non-Cash Working Capital (NCWC) 290,781,000
Change in NCWC -294,550,000
EBIT 456,597,000
Tax Provision 107,995,000
Depreciation and Amortization 137,505,000
Capital Expenditure -92,550,000
Unlevered Free Cash Flow 88,783,321
Current Assets 1,643,444,000
Current Cash 304,300,000
Current Liabilities 1,211,618,000
Current Debt 457,805,000
Non-Cash Working Capital (NCWC) 585,331,000
Change in NCWC 70,157,000
EBIT 398,499,000
Tax Provision 107,398,000
Depreciation and Amortization 122,069,000
Capital Expenditure -81,411,000
Unlevered Free Cash Flow 395,896,759
Current Assets 1,214,492,000
Current Cash 255,000,000
Current Liabilities 704,114,000
Current Debt 259,796,000
Non-Cash Working Capital (NCWC) 515,174,000
Change in NCWC 90,609,000
EBIT 393,988,000
Tax Provision 95,571,000
Depreciation and Amortization 111,788,000
Capital Expenditure -98,590,000
Unlevered Free Cash Flow 385,154,768
Current Assets 1,248,739,000
Current Cash 278,700,000
Current Liabilities 837,285,000
Current Debt 291,811,000
Non-Cash Working Capital (NCWC) 424,565,000
Change in NCWC -95,593,000
EBIT 391,787,000
Tax Provision 82,881,000
Depreciation and Amortization 99,099,000
Capital Expenditure -109,876,000
Unlevered Free Cash Flow 177,339,041

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