DCF Tool

PAYC

Paycom Software Inc – Software Publishers
paycom (nyse:payc) helps employers streamline their payroll and hr processes with the latest cloud-based human capital management technology. we innovated payroll services over the internet and for over a decade, our software-as-a-service (saas) solution has helped to free companies from the constraints of traditional software. in addition to payroll processing we offer a complete suite of human capital management tools that includes time and attendance, hris, talent acquisition, hr management and talent management all in one online application. paycom is growing at a phenomenal pace by providing cutting-edge technology and personal payroll expertise at a lower cost. as one of the largest and fastest-growing human capital management providers, paycom serves clients in all 50 states from 36 sales teams across the country.
Analysis Results
Intrinsic Value $123.01
Latest Price $257.16
Relative Value 109% overvalued
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 34.9%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 11.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 34.9%, 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 297 266
2024 400 321
2025 539 388
2026 728 470
2027 981 568
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 10500 million. This corresponds to a present value of 5420 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2010 million. Adding in the terminal value gives a total present value of 7440 million.

There are presently 60.5 million outstanding shares, so the intrinsic value per share is 123.01.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,764,172,000
Current Cash 400,730,000
Current Liabilities 2,377,037,000
Current Debt 0
Non-Cash Working Capital (NCWC) -13,595,000
Change in NCWC 980,000
EBIT 378,679,000
Tax Provision 108,189,000
Depreciation and Amortization 92,699,000
Capital Expenditure -136,798,000
Unlevered Free Cash Flow 230,397,741
Current Assets 2,252,038,000
Current Cash 277,978,000
Current Liabilities 1,990,410,000
Current Debt 1,775,000
Non-Cash Working Capital (NCWC) -14,575,000
Change in NCWC -11,215,000
EBIT 253,567,000
Tax Provision 60,002,000
Depreciation and Amortization 67,222,000
Capital Expenditure -126,192,000
Unlevered Free Cash Flow 123,941,430
Current Assets 1,864,605,000
Current Cash 151,710,000
Current Liabilities 1,718,030,000
Current Debt 1,775,000
Non-Cash Working Capital (NCWC) -3,360,000
Change in NCWC 10,954,000
EBIT 186,123,000
Tax Provision 42,483,000
Depreciation and Amortization 53,373,000
Capital Expenditure -94,102,000
Unlevered Free Cash Flow 113,822,273
Current Assets 1,871,100,000
Current Cash 133,667,000
Current Liabilities 1,753,522,000
Current Debt 1,775,000
Non-Cash Working Capital (NCWC) -14,314,000
Change in NCWC -6,311,000
EBIT 226,224,000
Tax Provision 45,511,000
Depreciation and Amortization 42,211,000
Capital Expenditure -92,934,000
Unlevered Free Cash Flow 123,651,422
Current Assets 1,064,622,000
Current Cash 45,718,000
Current Liabilities 1,028,682,000
Current Debt 1,775,000
Non-Cash Working Capital (NCWC) -8,003,000
Change in NCWC 27,476,000
EBIT 173,715,000
Tax Provision 37,646,000
Depreciation and Amortization 29,657,000
Capital Expenditure -59,906,000
Unlevered Free Cash Flow 133,510,613
Current Assets 1,149,862,000
Current Cash 46,077,000
Current Liabilities 1,140,152,000
Current Debt 888,000
Non-Cash Working Capital (NCWC) -35,479,000
Change in NCWC -3,123,000
EBIT 78,625,000
Tax Provision 9,840,000
Depreciation and Amortization 19,395,000
Capital Expenditure -59,389,000
Unlevered Free Cash Flow 25,414,062
Current Assets 925,583,000
Current Cash 60,158,000
Current Liabilities 898,894,000
Current Debt 1,113,000
Non-Cash Working Capital (NCWC) -32,356,000
Change in NCWC -16,132,000
EBIT 57,971,000
Tax Provision 13,403,000
Depreciation and Amortization 13,632,000
Capital Expenditure -43,805,000
Unlevered Free Cash Flow -1,907,455
Current Assets 761,138,000
Current Cash 50,714,000
Current Liabilities 727,534,000
Current Debt 886,000
Non-Cash Working Capital (NCWC) -16,224,000
Change in NCWC -6,556,000
EBIT 34,435,000
Tax Provision 12,580,000
Depreciation and Amortization 9,421,000
Capital Expenditure -16,549,000
Unlevered Free Cash Flow 7,829,529

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.