DCF Tool

HCKT

Hackett Group Inc (The) – Data Processing, Hosting, and Related Services
The Hackett Group is an intellectual property-based strategic consultancy and leading enterprise benchmarking firm to global companies, offering digital transformation including implementation of leading enterprise cloud applications, workflow automation and analytics that enable digital world class performance.
Analysis Results
Intrinsic Value $75.40
Latest Price $23.16
Relative Value 69% 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 23.4%.

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 23.4%, 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 63.3 59.1
2023 78.1 68.2
2024 96.4 78.7
2025 119 90.7
2026 147 105
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2990 million. This corresponds to a present value of 1990 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 401 million. Adding in the terminal value gives a total present value of 2390 million.

There are presently 31.7 million outstanding shares, so the intrinsic value per share is 75.4.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 102,176,000
Current Cash 45,794,000
Current Liabilities 54,889,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,493,000
Change in NCWC 8,683,000
EBIT 46,476,000
Tax Provision 4,829,000
Depreciation and Amortization 4,377,000
Capital Expenditure -3,242,000
Unlevered Free Cash Flow 51,455,108
Current Assets 84,832,000
Current Cash 49,455,000
Current Liabilities 42,567,000
Current Debt 0
Non-Cash Working Capital (NCWC) -7,190,000
Change in NCWC -16,180,000
EBIT 19,130,000
Tax Provision 2,871,000
Depreciation and Amortization 4,479,000
Capital Expenditure -1,893,000
Unlevered Free Cash Flow -913,298
Current Assets 78,627,000
Current Cash 25,954,000
Current Liabilities 43,683,000
Current Debt 0
Non-Cash Working Capital (NCWC) 8,990,000
Change in NCWC -6,066,000
EBIT 34,719,000
Tax Provision 7,744,000
Depreciation and Amortization 4,242,000
Capital Expenditure -4,568,000
Unlevered Free Cash Flow 19,661,517
Current Assets 73,091,000
Current Cash 13,808,000
Current Liabilities 44,227,000
Current Debt 0
Non-Cash Working Capital (NCWC) 15,056,000
Change in NCWC 8,731,000
EBIT 35,479,000
Tax Provision 5,577,000
Depreciation and Amortization 4,834,000
Capital Expenditure -9,637,000
Unlevered Free Cash Flow 33,399,397
Current Assets 75,285,000
Current Cash 17,512,000
Current Liabilities 51,448,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,325,000
Change in NCWC 13,036,000
EBIT 32,115,000
Tax Provision 2,884,000
Depreciation and Amortization 4,532,000
Capital Expenditure -6,517,000
Unlevered Free Cash Flow 40,102,977
Current Assets 68,813,000
Current Cash 19,710,000
Current Liabilities 55,814,000
Current Debt 0
Non-Cash Working Capital (NCWC) -6,711,000
Change in NCWC -583,000
EBIT 34,553,000
Tax Provision 12,625,000
Depreciation and Amortization 3,585,000
Capital Expenditure -3,179,000
Unlevered Free Cash Flow 21,607,995
Current Assets 67,487,000
Current Cash 23,503,000
Current Liabilities 50,112,000
Current Debt 0
Non-Cash Working Capital (NCWC) -6,128,000
Change in NCWC -9,766,000
EBIT 21,925,000
Tax Provision 7,707,000
Depreciation and Amortization 4,789,000
Capital Expenditure -3,002,000
Unlevered Free Cash Flow 6,092,496
Current Assets 57,056,000
Current Cash 14,608,000
Current Liabilities 38,810,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,638,000
Change in NCWC -4,060,000
EBIT 13,175,000
Tax Provision 2,255,000
Depreciation and Amortization 4,569,000
Capital Expenditure -3,097,000
Unlevered Free Cash Flow 8,104,163
Current Assets 59,623,000
Current Cash 18,199,000
Current Liabilities 33,726,000
Current Debt 0
Non-Cash Working Capital (NCWC) 7,698,000
Change in NCWC -2,052,000
EBIT 15,727,000
Tax Provision 6,398,000
Depreciation and Amortization 2,485,000
Capital Expenditure -2,068,000
Unlevered Free Cash Flow 7,499,066

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