DCF Tool

MEDP

Medpace Holdings Inc – Research and Development in Biotechnology
a therapeutically focused leader in research-based drug development, medpace builds strong strategic partnerships with select sponsors to advance the most efficient and cost-effective path to drug approval. as a full service, global clinical research organization (cro), medpace sees itself as a steward of your drug, leveraging its extensive medical and regulatory expertise to deliver additional input, strategy, and efficiencies to each and every phase of the clinical trial. from custom solutions addressing the needs of small and midsize biotechnology companies to full-service offerings for global pharmaceutical companies, medpace has the breadth, depth, and flexibility to deliver a superior result, specific to your needs, on six continents.
Analysis Results
Intrinsic Value $63.78
Latest Price $248.00
Relative Value 289% 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 13.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 9.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 13.1%, 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 113 103
2024 128 107
2025 145 110
2026 164 113
2027 186 117
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2450 million. This corresponds to a present value of 1400 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 550 million. Adding in the terminal value gives a total present value of 1950 million.

There are presently 30.6 million outstanding shares, so the intrinsic value per share is 63.78.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 333,962,000
Current Cash 28,265,000
Current Liabilities 803,470,000
Current Debt 50,000,000
Non-Cash Working Capital (NCWC) -447,773,000
Change in NCWC -120,164,000
EBIT 278,697,000
Tax Provision 37,492,000
Depreciation and Amortization 22,341,000
Capital Expenditure -36,879,000
Unlevered Free Cash Flow 107,054,789
Current Assets 690,912,000
Current Cash 461,304,000
Current Liabilities 557,217,000
Current Debt 0
Non-Cash Working Capital (NCWC) -327,609,000
Change in NCWC -83,384,000
EBIT 198,615,000
Tax Provision 20,004,000
Depreciation and Amortization 21,119,000
Capital Expenditure -28,271,000
Unlevered Free Cash Flow 88,395,794
Current Assets 473,651,000
Current Cash 277,766,000
Current Liabilities 440,110,000
Current Debt 0
Non-Cash Working Capital (NCWC) -244,225,000
Change in NCWC -86,331,000
EBIT 167,042,000
Tax Provision 23,148,000
Depreciation and Amortization 19,528,000
Capital Expenditure -31,340,000
Unlevered Free Cash Flow 45,955,652
Current Assets 317,028,000
Current Cash 131,920,000
Current Liabilities 343,002,000
Current Debt 0
Non-Cash Working Capital (NCWC) -157,894,000
Change in NCWC -55,707,000
EBIT 127,263,000
Tax Provision 24,389,000
Depreciation and Amortization 23,189,000
Capital Expenditure -17,912,000
Unlevered Free Cash Flow 51,969,044
Current Assets 178,114,000
Current Cash 23,275,000
Current Liabilities 257,026,000
Current Debt 0
Non-Cash Working Capital (NCWC) -102,187,000
Change in NCWC -29,467,000
EBIT 101,048,000
Tax Provision 20,766,000
Depreciation and Amortization 38,801,000
Capital Expenditure -16,024,000
Unlevered Free Cash Flow 72,023,349
Current Assets 129,971,000
Current Cash 26,485,000
Current Liabilities 192,706,000
Current Debt 16,500,000
Non-Cash Working Capital (NCWC) -72,720,000
Change in NCWC -12,641,000
EBIT 64,858,000
Tax Provision 17,823,000
Depreciation and Amortization 46,474,000
Capital Expenditure -12,293,000
Unlevered Free Cash Flow 66,098,340

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