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NSP

Insperity Inc – Human Resources Consulting Services
Insperity®, a trusted advisor to America's best businesses for more than 34 years, provides an array of human resources and business solutions designed to help improve business performance. Offering the most comprehensive suite of products and services available in the marketplace, Insperity delivers administrative relief, better benefits, reduced liabilities and a systematic way to improve productivity through its premier Workforce Optimization® solution. Additional company offerings include Traditional Payroll and Human Capital Management, Time and Attendance, Performance Management, Organizational Planning, Recruiting Services, Employment Screening, Retirement Services and Insurance Services. With 2020 revenues of $4.3 billion, Insperity supports more than 100,000 businesses with over 2 million employees nationwide.
Analysis Results
Intrinsic Value $41.03
Latest Price $110.45
Relative Value 169% 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 8.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.0%, 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 80.5 74.6
2024 86.9 74.6
2025 93.8 74.7
2026 101 74.7
2027 109 74.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1890 million. This corresponds to a present value of 1190 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 373 million. Adding in the terminal value gives a total present value of 1570 million.

There are presently 38.2 million outstanding shares, so the intrinsic value per share is 41.03.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,511,873,000
Current Cash 765,896,000
Current Liabilities 1,353,370,000
Current Debt 0
Non-Cash Working Capital (NCWC) -607,393,000
Change in NCWC -116,065,000
EBIT 250,239,000
Tax Provision 66,075,000
Depreciation and Amortization 40,660,000
Capital Expenditure -30,329,000
Unlevered Free Cash Flow 77,133,941
Current Assets 1,244,848,000
Current Cash 607,603,000
Current Liabilities 1,128,573,000
Current Debt 0
Non-Cash Working Capital (NCWC) -491,328,000
Change in NCWC -74,297,000
EBIT 173,329,000
Tax Provision 44,238,000
Depreciation and Amortization 38,547,000
Capital Expenditure -32,907,000
Unlevered Free Cash Flow 59,116,989
Current Assets 1,077,268,000
Current Cash 589,375,000
Current Liabilities 904,924,000
Current Debt 0
Non-Cash Working Capital (NCWC) -417,031,000
Change in NCWC -120,662,000
EBIT 194,689,000
Tax Provision 51,033,000
Depreciation and Amortization 31,189,000
Capital Expenditure -98,159,000
Unlevered Free Cash Flow -45,437,128
Current Assets 974,746,000
Current Cash 402,070,000
Current Liabilities 869,045,000
Current Debt 0
Non-Cash Working Capital (NCWC) -296,369,000
Change in NCWC -3,019,000
EBIT 186,633,000
Tax Provision 38,544,000
Depreciation and Amortization 28,723,000
Capital Expenditure -56,307,000
Unlevered Free Cash Flow 118,097,767
Current Assets 866,536,000
Current Cash 387,554,000
Current Liabilities 772,332,000
Current Debt 0
Non-Cash Working Capital (NCWC) -293,350,000
Change in NCWC 10,416,000
EBIT 179,036,000
Tax Provision 46,947,000
Depreciation and Amortization 22,842,000
Capital Expenditure -35,328,000
Unlevered Free Cash Flow 130,874,734
Current Assets 778,935,000
Current Cash 356,220,000
Current Liabilities 726,481,000
Current Debt 0
Non-Cash Working Capital (NCWC) -303,766,000
Change in NCWC -55,245,000
EBIT 129,941,000
Tax Provision 45,739,000
Depreciation and Amortization 18,182,000
Capital Expenditure -33,337,000
Unlevered Free Cash Flow 13,872,291
Current Assets 640,322,000
Current Cash 287,885,000
Current Liabilities 600,958,000
Current Debt 0
Non-Cash Working Capital (NCWC) -248,521,000
Change in NCWC -23,445,000
EBIT 106,306,000
Tax Provision 39,186,000
Depreciation and Amortization 16,644,000
Capital Expenditure -33,994,000
Unlevered Free Cash Flow 25,904,366
Current Assets 542,048,000
Current Cash 279,413,000
Current Liabilities 487,711,000
Current Debt 0
Non-Cash Working Capital (NCWC) -225,076,000
Change in NCWC 6,953,000
EBIT 76,179,000
Tax Provision 26,229,000
Depreciation and Amortization 18,565,000
Capital Expenditure -17,844,000
Unlevered Free Cash Flow 53,402,993
Current Assets 569,509,000
Current Cash 305,087,000
Current Liabilities 496,451,000
Current Debt 0
Non-Cash Working Capital (NCWC) -232,029,000
Change in NCWC -88,564,000
EBIT 51,161,000
Tax Provision 19,623,000
Depreciation and Amortization 21,387,000
Capital Expenditure -19,124,000
Unlevered Free Cash Flow -56,219,058
Current Assets 565,317,000
Current Cash 272,095,000
Current Liabilities 436,687,000
Current Debt 0
Non-Cash Working Capital (NCWC) -143,465,000
Change in NCWC 22,277,000
EBIT 59,565,000
Tax Provision 21,700,000
Depreciation and Amortization 21,033,000
Capital Expenditure -11,562,000
Unlevered Free Cash Flow 67,257,306
Current Assets 551,465,000
Current Cash 281,448,000
Current Liabilities 435,759,000
Current Debt 0
Non-Cash Working Capital (NCWC) -165,742,000
Change in NCWC -24,109,000
EBIT 71,685,000
Tax Provision 27,888,000
Depreciation and Amortization 18,183,000
Capital Expenditure -17,631,000
Unlevered Free Cash Flow 18,853,563

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