DCF Tool

MAN

ManpowerGroup – Human Resources Consulting Services
ManpowerGroup®, the leading global workforce solutions company, helps organizations transform in a fast-changing world of work by sourcing, assessing, developing and managing the talent that enables them to win. We develop innovative solutions for hundreds of thousands of organizations every year, providing them with skilled talent while finding meaningful, sustainable employment for millions of people across a wide range of industries and skills. Our expert family of brands - Manpower®, Experis®, Right Management® and ManpowerGroup® Solutions - creates substantially more value for candidates and clients across 80 countries and territories and has done so for over 70 years. In 2019, ManpowerGroup was named one of Fortune's Most Admired Companies for the seventeenth year and one of the World's Most Ethical Companies for the tenth year, confirming our position as the most trusted brand in the industry.
Analysis Results
Intrinsic Value $105.33
Latest Price $86.50
Relative Value 18% 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 -1.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -1.2%, 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 361 335
2023 357 307
2024 352 282
2025 348 258
2026 344 237
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6110 million. This corresponds to a present value of 3910 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1420 million. Adding in the terminal value gives a total present value of 5330 million.

There are presently 50.6 million outstanding shares, so the intrinsic value per share is 105.33.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 6,422,700,000
Current Cash 847,800,000
Current Liabilities 5,780,500,000
Current Debt 552,600,000
Non-Cash Working Capital (NCWC) 347,000,000
Change in NCWC -87,900,000
EBIT 585,400,000
Tax Provision 185,700,000
Depreciation and Amortization 73,400,000
Capital Expenditure -64,200,000
Unlevered Free Cash Flow 315,344,992
Current Assets 6,666,400,000
Current Cash 1,567,100,000
Current Liabilities 4,684,800,000
Current Debt 20,400,000
Non-Cash Working Capital (NCWC) 434,900,000
Change in NCWC -643,400,000
EBIT 254,400,000
Tax Provision 123,900,000
Depreciation and Amortization 76,300,000
Capital Expenditure -50,700,000
Unlevered Free Cash Flow -576,806,635
Current Assets 6,484,500,000
Current Cash 1,025,800,000
Current Liabilities 4,441,400,000
Current Debt 61,000,000
Non-Cash Working Capital (NCWC) 1,078,300,000
Change in NCWC -201,100,000
EBIT 644,900,000
Tax Provision 219,800,000
Depreciation and Amortization 77,200,000
Capital Expenditure -52,900,000
Unlevered Free Cash Flow 261,318,059
Current Assets 5,997,100,000
Current Cash 591,900,000
Current Liabilities 4,175,900,000
Current Debt 50,100,000
Non-Cash Working Capital (NCWC) 1,279,400,000
Change in NCWC 138,200,000
EBIT 796,700,000
Tax Provision 198,000,000
Depreciation and Amortization 85,800,000
Capital Expenditure -64,700,000
Unlevered Free Cash Flow 746,981,052
Current Assets 6,171,200,000
Current Cash 689,000,000
Current Liabilities 4,810,400,000
Current Debt 469,400,000
Non-Cash Working Capital (NCWC) 1,141,200,000
Change in NCWC 225,800,000
EBIT 788,200,000
Tax Provision 191,900,000
Depreciation and Amortization 84,400,000
Capital Expenditure -54,700,000
Unlevered Free Cash Flow 838,552,054
Current Assets 5,132,900,000
Current Cash 598,500,000
Current Liabilities 3,658,800,000
Current Debt 39,800,000
Non-Cash Working Capital (NCWC) 915,400,000
Change in NCWC -39,800,000
EBIT 750,800,000
Tax Provision 257,600,000
Depreciation and Amortization 85,300,000
Capital Expenditure -56,900,000
Unlevered Free Cash Flow 463,617,767
Current Assets 5,092,500,000
Current Cash 730,500,000
Current Liabilities 3,451,000,000
Current Debt 44,200,000
Non-Cash Working Capital (NCWC) 955,200,000
Change in NCWC -50,100,000
EBIT 688,900,000
Tax Provision 241,500,000
Depreciation and Amortization 77,700,000
Capital Expenditure -52,300,000
Unlevered Free Cash Flow 412,392,296
Current Assets 5,033,700,000
Current Cash 699,200,000
Current Liabilities 3,374,400,000
Current Debt 45,200,000
Non-Cash Working Capital (NCWC) 1,005,300,000
Change in NCWC -26,500,000
EBIT 719,900,000
Tax Provision 254,000,000
Depreciation and Amortization 83,800,000
Capital Expenditure -51,500,000
Unlevered Free Cash Flow 457,427,406
Current Assets 5,243,000,000
Current Cash 737,600,000
Current Liabilities 3,509,600,000
Current Debt 36,000,000
Non-Cash Working Capital (NCWC) 1,031,800,000
Change in NCWC -11,500,000
EBIT 511,900,000
Tax Provision 187,500,000
Depreciation and Amortization 94,300,000
Capital Expenditure -44,700,000
Unlevered Free Cash Flow 348,146,687
Current Assets 5,060,600,000
Current Cash 648,100,000
Current Liabilities 3,677,200,000
Current Debt 308,000,000
Non-Cash Working Capital (NCWC) 1,043,300,000
Change in NCWC -38,700,000
EBIT 411,700,000
Tax Provision 170,800,000
Depreciation and Amortization 100,500,000
Capital Expenditure -72,000,000
Unlevered Free Cash Flow 210,624,972

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