DCF Tool

MMS

Maximus Inc. – Data Processing, Hosting, and Related Services
with a focus on more effective and efficient government programs, maximus has operated under our founding mission of "helping government serve the people"‚Äč since 1975. our 16,000+ professionals deliver high-quality business process and technology solutions, as well as specialized consulting services for government agencies across north america, australia, the united kingdom and saudi arabia. together, we offer better solutions that lead to better lives for participants of health, welfare-to-work, and child support programs.
Analysis Results
Intrinsic Value $156.61
Latest Price $74.38
Relative Value 53% 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 10.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.1%, 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 381 356
2024 420 367
2025 462 377
2026 509 388
2027 560 400
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 11400 million. This corresponds to a present value of 7630 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1890 million. Adding in the terminal value gives a total present value of 9520 million.

There are presently 60.8 million outstanding shares, so the intrinsic value per share is 156.61.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,032,313,000
Current Cash 40,658,000
Current Liabilities 774,447,000
Current Debt 63,458,000
Non-Cash Working Capital (NCWC) 280,666,000
Change in NCWC 45,111,000
EBIT 314,852,000
Tax Provision 73,270,000
Depreciation and Amortization 132,795,000
Capital Expenditure -56,145,000
Unlevered Free Cash Flow 353,360,121
Current Assets 1,079,494,000
Current Cash 135,061,000
Current Liabilities 789,433,000
Current Debt 80,555,000
Non-Cash Working Capital (NCWC) 235,555,000
Change in NCWC -74,976,000
EBIT 408,530,000
Tax Provision 92,481,000
Depreciation and Amortization 90,718,000
Capital Expenditure -36,565,000
Unlevered Free Cash Flow 289,236,492
Current Assets 932,558,000
Current Cash 71,737,000
Current Liabilities 561,168,000
Current Debt 10,878,000
Non-Cash Working Capital (NCWC) 310,531,000
Change in NCWC -18,749,000
EBIT 288,278,000
Tax Provision 72,553,000
Depreciation and Amortization 100,161,000
Capital Expenditure -40,707,000
Unlevered Free Cash Flow 256,122,664
Current Assets 789,425,000
Current Cash 105,565,000
Current Liabilities 364,238,000
Current Debt 9,658,000
Non-Cash Working Capital (NCWC) 329,280,000
Change in NCWC 167,606,000
EBIT 317,107,000
Tax Provision 76,825,000
Depreciation and Amortization 85,458,000
Capital Expenditure -66,846,000
Unlevered Free Cash Flow 426,551,568
Current Assets 808,632,000
Current Cash 369,509,000
Current Liabilities 277,449,000
Current Debt 0
Non-Cash Working Capital (NCWC) 161,674,000
Change in NCWC -13,191,000
EBIT 298,836,000
Tax Provision 78,393,000
Depreciation and Amortization 62,192,000
Capital Expenditure -26,520,000
Unlevered Free Cash Flow 243,021,726
Current Assets 657,242,000
Current Cash 166,252,000
Current Liabilities 316,266,000
Current Debt 141,000
Non-Cash Working Capital (NCWC) 174,865,000
Change in NCWC -39,437,000
EBIT 315,187,000
Tax Provision 102,053,000
Depreciation and Amortization 67,977,000
Capital Expenditure -24,154,000
Unlevered Free Cash Flow 217,210,822
Current Assets 620,980,000
Current Cash 66,199,000
Current Liabilities 340,756,000
Current Debt 277,000
Non-Cash Working Capital (NCWC) 214,302,000
Change in NCWC 64,099,000
EBIT 280,555,000
Tax Provision 105,808,000
Depreciation and Amortization 71,781,000
Capital Expenditure -46,391,000
Unlevered Free Cash Flow 266,238,806
Current Assets 580,899,000
Current Cash 74,672,000
Current Liabilities 356,380,000
Current Debt 356,000
Non-Cash Working Capital (NCWC) 150,203,000
Change in NCWC 41,176,000
EBIT 264,577,000
Tax Provision 99,770,000
Depreciation and Amortization 56,197,000
Capital Expenditure -105,149,000
Unlevered Free Cash Flow 155,203,937
Current Assets 532,460,000
Current Cash 158,112,000
Current Liabilities 265,321,000
Current Debt 0
Non-Cash Working Capital (NCWC) 109,027,000
Change in NCWC 7,182,000
EBIT 225,308,000
Tax Provision 81,973,000
Depreciation and Amortization 42,778,000
Capital Expenditure -36,262,000
Unlevered Free Cash Flow 157,776,049
Current Assets 489,599,000
Current Cash 125,617,000
Current Liabilities 262,307,000
Current Debt 170,000
Non-Cash Working Capital (NCWC) 101,845,000
Change in NCWC 41,431,000
EBIT 188,174,000
Tax Provision 71,934,000
Depreciation and Amortization 35,816,000
Capital Expenditure -62,176,000
Unlevered Free Cash Flow 131,647,728
Current Assets 448,684,000
Current Cash 189,312,000
Current Liabilities 199,136,000
Current Debt 178,000
Non-Cash Working Capital (NCWC) 60,414,000
Change in NCWC 5,939,000
EBIT 130,541,000
Tax Provision 55,652,000
Depreciation and Amortization 26,460,000
Capital Expenditure -23,148,000
Unlevered Free Cash Flow 84,651,107

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