DCF Tool

HQY

Healthequity Inc – All Other Information Services
HealthEquity and its subsidiaries administer HSAs and other consumer-directed benefits for its more than 12 million accounts in partnership with employers, benefits advisors, and health and retirement plan providers who share its mission to connect health and wealth and value its culture of remarkable 'Purple' service.
Analysis Results
Intrinsic Value $97.64
Latest Price $64.65
Relative Value 34% 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 24.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 24.7%, 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)
2023 148 141
2024 185 166
2025 231 196
2026 288 231
2027 359 273
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10100 million. This corresponds to a present value of 7250 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1010 million. Adding in the terminal value gives a total present value of 8250 million.

There are presently 84.5 million outstanding shares, so the intrinsic value per share is 97.64.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 351,337,000
Current Cash 225,414,000
Current Liabilities 153,187,000
Current Debt 8,750,000
Non-Cash Working Capital (NCWC) -18,514,000
Change in NCWC -7,687,000
EBIT 40,567,000
Tax Provision -22,452,000
Depreciation and Amortization 137,188,000
Capital Expenditure -137,081,000
Unlevered Free Cash Flow 32,987,000
Current Assets 460,177,000
Current Cash 328,803,000
Current Liabilities 204,701,000
Current Debt 62,500,000
Non-Cash Working Capital (NCWC) -10,827,000
Change in NCWC -3,527,000
EBIT 80,004,000
Tax Provision -4,694,000
Depreciation and Amortization 115,904,000
Capital Expenditure -96,964,000
Unlevered Free Cash Flow 95,417,000
Current Assets 297,300,000
Current Cash 191,726,000
Current Liabilities 151,937,000
Current Debt 39,063,000
Non-Cash Working Capital (NCWC) -7,300,000
Change in NCWC -11,449,000
EBIT 109,117,000
Tax Provision 3,491,000
Depreciation and Amortization 55,352,000
Capital Expenditure -42,074,000
Unlevered Free Cash Flow 102,119,040
Current Assets 394,677,000
Current Cash 361,475,000
Current Liabilities 29,053,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,149,000
Change in NCWC -488,000
EBIT 77,670,000
Tax Provision 1,919,000
Depreciation and Amortization 18,185,000
Capital Expenditure -15,042,000
Unlevered Free Cash Flow 78,359,124
Current Assets 265,396,000
Current Cash 240,269,000
Current Liabilities 20,490,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,637,000
Change in NCWC -120,000
EBIT 54,418,000
Tax Provision 4,827,000
Depreciation and Amortization 15,952,000
Capital Expenditure -33,383,000
Unlevered Free Cash Flow 31,833,838
Current Assets 200,819,000
Current Cash 180,359,000
Current Liabilities 15,703,000
Current Debt 0
Non-Cash Working Capital (NCWC) 4,757,000
Change in NCWC -2,410,000
EBIT 41,212,000
Tax Provision 13,744,000
Depreciation and Amortization 13,186,000
Capital Expenditure -12,675,000
Unlevered Free Cash Flow 25,194,911
Current Assets 143,048,000
Current Cash 123,775,000
Current Liabilities 12,106,000
Current Debt 0
Non-Cash Working Capital (NCWC) 7,167,000
Change in NCWC 2,284,000
EBIT 26,143,000
Tax Provision 8,941,000
Depreciation and Amortization 8,601,000
Capital Expenditure -49,761,000
Unlevered Free Cash Flow -21,880,083

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