DCF Tool

KFY

Korn Ferry – Human Resources Consulting Services
Korn Ferry is a global organizational consulting firm. The Company works with our clients to design optimal organization structures, roles, and responsibilities. The Company helps them hire the right people and advise them on how to reward and motivate their workforce while developing professionals as they navigate and advance their careers.
Analysis Results
Intrinsic Value $58.36
Latest Price $46.95
Relative Value 20% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Millions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 10.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.5%, 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 168 155
2024 186 157
2025 205 160
2026 227 163
2027 251 165
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3820 million. This corresponds to a present value of 2320 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 800 million. Adding in the terminal value gives a total present value of 3110 million.

There are presently 53.4 million outstanding shares, so the intrinsic value per share is 58.36.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,759,970,000
Current Cash 1,035,314,000
Current Liabilities 984,225,000
Current Debt 0
Non-Cash Working Capital (NCWC) -259,569,000
Change in NCWC -82,186,000
EBIT 470,074,000
Tax Provision 102,056,000
Depreciation and Amortization 63,521,000
Capital Expenditure -49,406,000
Unlevered Free Cash Flow 291,183,500
Current Assets 1,487,132,000
Current Cash 914,445,000
Current Liabilities 750,070,000
Current Debt 0
Non-Cash Working Capital (NCWC) -177,383,000
Change in NCWC -59,064,000
EBIT 186,516,000
Tax Provision 48,138,000
Depreciation and Amortization 61,845,000
Capital Expenditure -31,122,000
Unlevered Free Cash Flow 103,327,674
Current Assets 1,237,083,000
Current Cash 731,195,000
Current Liabilities 624,207,000
Current Debt 0
Non-Cash Working Capital (NCWC) -118,319,000
Change in NCWC -69,523,000
EBIT 234,584,000
Tax Provision 43,945,000
Depreciation and Amortization 55,311,000
Capital Expenditure -41,460,000
Unlevered Free Cash Flow 110,624,656
Current Assets 1,136,810,000
Current Cash 634,648,000
Current Liabilities 550,958,000
Current Debt 0
Non-Cash Working Capital (NCWC) -48,796,000
Change in NCWC 5,635,000
EBIT 141,137,000
Tax Provision 29,544,000
Depreciation and Amortization 46,489,000
Capital Expenditure -46,682,000
Unlevered Free Cash Flow 115,540,206
Current Assets 1,014,259,000
Current Cash 535,141,000
Current Liabilities 558,460,000
Current Debt 24,911,000
Non-Cash Working Capital (NCWC) -54,431,000
Change in NCWC -44,035,000
EBIT 204,259,000
Tax Provision 70,133,000
Depreciation and Amortization 48,588,000
Capital Expenditure -42,000,000
Unlevered Free Cash Flow 97,281,851
Current Assets 843,674,000
Current Cash 415,245,000
Current Liabilities 458,579,000
Current Debt 19,754,000
Non-Cash Working Capital (NCWC) -10,396,000
Change in NCWC 56,184,000
EBIT 149,373,000
Tax Provision 29,104,000
Depreciation and Amortization 47,260,000
Capital Expenditure -50,088,000
Unlevered Free Cash Flow 165,361,997
Current Assets 664,274,000
Current Cash 284,590,000
Current Liabilities 476,264,000
Current Debt 30,000,000
Non-Cash Working Capital (NCWC) -66,580,000
Change in NCWC 5,040,000
EBIT 87,336,000
Tax Provision 18,960,000
Depreciation and Amortization 36,220,000
Capital Expenditure -26,144,000
Unlevered Free Cash Flow 69,592,464
Current Assets 640,985,000
Current Cash 406,595,000
Current Liabilities 306,010,000
Current Debt 0
Non-Cash Working Capital (NCWC) -71,620,000
Change in NCWC -3,358,000
EBIT 125,677,000
Tax Provision 33,526,000
Depreciation and Amortization 27,597,000
Capital Expenditure -21,860,000
Unlevered Free Cash Flow 93,486,395
Current Assets 561,954,000
Current Cash 343,283,000
Current Liabilities 286,933,000
Current Debt 0
Non-Cash Working Capital (NCWC) -68,262,000
Change in NCWC -2,398,000
EBIT 97,459,000
Tax Provision 28,492,000
Depreciation and Amortization 26,172,000
Capital Expenditure -28,559,000
Unlevered Free Cash Flow 65,230,636
Current Assets 447,100,000
Current Cash 244,413,000
Current Liabilities 268,551,000
Current Debt 0
Non-Cash Working Capital (NCWC) -65,864,000
Change in NCWC -27,678,000
EBIT 68,843,000
Tax Provision 16,637,000
Depreciation and Amortization 19,004,000
Capital Expenditure -13,101,000
Unlevered Free Cash Flow 24,129,065
Current Assets 500,067,000
Current Cash 322,941,000
Current Liabilities 215,312,000
Current Debt 0
Non-Cash Working Capital (NCWC) -38,186,000
Change in NCWC 21,807,000
EBIT 85,645,000
Tax Provision 28,351,000
Depreciation and Amortization 14,017,000
Capital Expenditure -18,957,000
Unlevered Free Cash Flow 73,135,062

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.