DCF Tool

PBI

Pitney Bowes, Inc. – Commercial Photography
Pitney Bowes is a global technology company providing commerce solutions that power billions of transactions. Clients around the world, including 90 percent of the Fortune 500, rely on the accuracy and precision delivered by Pitney Bowes solutions, analytics, and APIs in the areas of ecommerce fulfillment, shipping and returns; cross-border ecommerce; office mailing and shipping; presort services; and financing. For 100 years Pitney Bowes has been innovating and delivering technologies that remove the complexity of getting commerce transactions precisely right.
Analysis Results
Intrinsic Value $10.44
Latest Price $3.81
Relative Value 63% 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 -14.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.6%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -14.4%, 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 127 120
2023 109 97.4
2024 92.9 79.0
2025 79.5 64.0
2026 68.1 51.9
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1940 million. This corresponds to a present value of 1400 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 413 million. Adding in the terminal value gives a total present value of 1820 million.

There are presently 174.0 million outstanding shares, so the intrinsic value per share is 10.44.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,892,053,000
Current Cash 746,920,000
Current Liabilities 1,727,940,000
Current Debt 24,739,000
Non-Cash Working Capital (NCWC) -558,068,000
Change in NCWC -70,139,000
EBIT 151,058,000
Tax Provision -10,922,000
Depreciation and Amortization 162,859,000
Capital Expenditure -184,042,000
Unlevered Free Cash Flow 59,736,000
Current Assets 2,106,923,000
Current Cash 940,424,000
Current Liabilities 1,870,460,000
Current Debt 216,032,000
Non-Cash Working Capital (NCWC) -487,929,000
Change in NCWC -134,105,000
EBIT 146,145,000
Tax Provision 6,727,000
Depreciation and Amortization 160,625,000
Capital Expenditure -104,987,000
Unlevered Free Cash Flow 67,678,000
Current Assets 2,236,081,000
Current Cash 1,040,321,000
Current Liabilities 1,569,692,000
Current Debt 20,108,000
Non-Cash Working Capital (NCWC) -353,824,000
Change in NCWC -93,784,000
EBIT 227,739,000
Tax Provision -13,007,000
Depreciation and Amortization 159,142,000
Capital Expenditure -137,253,000
Unlevered Free Cash Flow 155,844,000
Current Assets 2,324,218,000
Current Cash 926,653,000
Current Liabilities 1,857,140,000
Current Debt 199,535,000
Non-Cash Working Capital (NCWC) -260,040,000
Change in NCWC -54,603,000
EBIT 380,727,000
Tax Provision 12,383,000
Depreciation and Amortization 203,293,000
Capital Expenditure -191,444,000
Unlevered Free Cash Flow 315,772,396
Current Assets 2,636,508,000
Current Cash 1,058,009,000
Current Liabilities 2,054,993,000
Current Debt 271,057,000
Non-Cash Working Capital (NCWC) -205,437,000
Change in NCWC -14,516,000
EBIT 459,773,000
Tax Provision 21,649,000
Depreciation and Amortization 182,336,000
Capital Expenditure -170,990,000
Unlevered Free Cash Flow 421,429,810
Current Assets 2,325,183,000
Current Cash 802,970,000
Current Liabilities 2,327,619,000
Current Debt 614,485,000
Non-Cash Working Capital (NCWC) -190,921,000
Change in NCWC 74,815,000
EBIT 570,264,000
Tax Provision 131,819,000
Depreciation and Amortization 178,486,000
Capital Expenditure -160,831,000
Unlevered Free Cash Flow 357,617,182
Current Assets 2,319,808,000
Current Cash 767,578,000
Current Liabilities 2,279,051,000
Current Debt 461,085,000
Non-Cash Working Capital (NCWC) -265,736,000
Change in NCWC 121,154,000
EBIT 629,352,000
Tax Provision 189,778,000
Depreciation and Amortization 173,312,000
Capital Expenditure -166,329,000
Unlevered Free Cash Flow 561,954,822
Current Assets 2,760,120,000
Current Cash 1,111,266,000
Current Liabilities 2,360,623,000
Current Debt 324,879,000
Non-Cash Working Capital (NCWC) -386,890,000
Change in NCWC -58,413,000
EBIT 652,382,000
Tax Provision 112,815,000
Depreciation and Amortization 198,088,000
Capital Expenditure -180,556,000
Unlevered Free Cash Flow 440,816,496
Current Assets 2,838,212,000
Current Cash 938,934,000
Current Liabilities 2,227,755,000
Current Debt 0
Non-Cash Working Capital (NCWC) -328,477,000
Change in NCWC -88,680,000
EBIT 629,428,000
Tax Provision 83,069,000
Depreciation and Amortization 211,243,000
Capital Expenditure -137,512,000
Unlevered Free Cash Flow 484,794,135
Current Assets 3,212,127,000
Current Cash 949,887,000
Current Liabilities 2,877,037,000
Current Debt 375,000,000
Non-Cash Working Capital (NCWC) -239,797,000
Change in NCWC -88,584,000
EBIT 736,114,000
Tax Provision 150,305,000
Depreciation and Amortization 255,556,000
Capital Expenditure -176,586,000
Unlevered Free Cash Flow 543,504,241

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