DCF Tool

KFRC

Kforce Inc. – Human Resources Consulting Services
kforce is a leading technology and finance & accounting professional staffing services firm with a national network of 60 offices, two national recruiting centers and more than 2,000 staffing specialists. we engage over 23,000 highly skilled professionals annually in both flexible assignments and direct hire placements with more than 4,000 customers of all sizes, including 70% of the fortune 100. our name means knowledgeforce® to describe the highly skilled professionals we represent combined with knowledge gained from over 50 years of experience and the power of our associates to make the right match.™ at kforce, great people = great results℠ and we strive to achieve our vision of being “the firm most respected by those we serve.” www.kforce.com connect with us! linkedin group - kforce professional network facebook: kforce twitter: @kforce
Analysis Results
Intrinsic Value $55.70
Latest Price $60.48
Relative Value 9% overvalued
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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 4.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 4.5%, 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 69.7 64.3
2024 72.8 62.0
2025 76.1 59.8
2026 79.4 57.6
2027 83.0 55.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1330 million. This corresponds to a present value of 821 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 299 million. Adding in the terminal value gives a total present value of 1120 million.

There are presently 20.1 million outstanding shares, so the intrinsic value per share is 55.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 277,760,000
Current Cash 121,000
Current Liabilities 131,433,000
Current Debt 0
Non-Cash Working Capital (NCWC) 146,206,000
Change in NCWC 31,515,000
EBIT 116,865,000
Tax Provision 27,011,000
Depreciation and Amortization 4,427,000
Capital Expenditure -8,109,000
Unlevered Free Cash Flow 113,884,070
Current Assets 372,111,000
Current Cash 96,989,000
Current Liabilities 160,431,000
Current Debt 0
Non-Cash Working Capital (NCWC) 114,691,000
Change in NCWC -12,549,000
EBIT 106,643,000
Tax Provision 24,090,000
Depreciation and Amortization 4,500,000
Capital Expenditure -6,441,000
Unlevered Free Cash Flow 66,273,000
Current Assets 338,892,000
Current Cash 103,486,000
Current Liabilities 108,166,000
Current Debt 0
Non-Cash Working Capital (NCWC) 127,240,000
Change in NCWC -13,200,000
EBIT 80,256,000
Tax Provision 19,173,000
Depreciation and Amortization 5,255,000
Capital Expenditure -6,475,000
Unlevered Free Cash Flow 45,377,186
Current Assets 245,235,000
Current Cash 19,831,000
Current Liabilities 84,964,000
Current Debt 0
Non-Cash Working Capital (NCWC) 140,440,000
Change in NCWC -17,552,000
EBIT 74,821,000
Tax Provision 16,830,000
Depreciation and Amortization 6,481,000
Capital Expenditure -10,359,000
Unlevered Free Cash Flow 35,753,633
Current Assets 248,462,000
Current Cash 112,000
Current Liabilities 90,358,000
Current Debt 0
Non-Cash Working Capital (NCWC) 157,992,000
Change in NCWC -3,355,000
EBIT 81,651,000
Tax Provision 19,173,000
Depreciation and Amortization 8,265,000
Capital Expenditure -5,170,000
Unlevered Free Cash Flow 61,100,219
Current Assets 245,445,000
Current Cash 379,000
Current Liabilities 83,719,000
Current Debt 0
Non-Cash Working Capital (NCWC) 161,347,000
Change in NCWC 22,677,000
EBIT 68,629,000
Tax Provision 30,809,000
Depreciation and Amortization 8,508,000
Capital Expenditure -5,846,000
Unlevered Free Cash Flow 60,979,095
Current Assets 223,505,000
Current Cash 1,482,000
Current Liabilities 83,353,000
Current Debt 0
Non-Cash Working Capital (NCWC) 138,670,000
Change in NCWC 13,379,000
EBIT 58,602,000
Tax Provision 23,182,000
Depreciation and Amortization 8,796,000
Capital Expenditure -12,420,000
Unlevered Free Cash Flow 44,078,355
Current Assets 214,534,000
Current Cash 1,497,000
Current Liabilities 87,746,000
Current Debt 0
Non-Cash Working Capital (NCWC) 125,291,000
Change in NCWC -3,697,000
EBIT 73,867,000
Tax Provision 28,848,000
Depreciation and Amortization 9,849,000
Capital Expenditure -8,328,000
Unlevered Free Cash Flow 41,959,511
Current Assets 224,409,000
Current Cash 1,238,000
Current Liabilities 94,183,000
Current Debt 0
Non-Cash Working Capital (NCWC) 128,988,000
Change in NCWC 16,950,000
EBIT 49,349,000
Tax Provision 18,559,000
Depreciation and Amortization 10,058,000
Capital Expenditure -6,011,000
Unlevered Free Cash Flow 51,248,306
Current Assets 202,886,000
Current Cash 875,000
Current Liabilities 89,973,000
Current Debt 0
Non-Cash Working Capital (NCWC) 112,038,000
Change in NCWC 40,734,000
EBIT 35,833,000
Tax Provision 9,311,000
Depreciation and Amortization 9,846,000
Capital Expenditure -8,145,000
Unlevered Free Cash Flow 61,667,290
Current Assets 171,559,000
Current Cash 1,381,000
Current Liabilities 98,874,000
Current Debt 0
Non-Cash Working Capital (NCWC) 71,304,000
Change in NCWC -30,832,000
EBIT 14,708,000
Tax Provision -19,854,000
Depreciation and Amortization 10,862,000
Capital Expenditure -5,846,000
Unlevered Free Cash Flow -11,108,000

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