DCF Tool

PCTY

Paylocity Holding Corp – Software Publishers
Paylocity is a leading provider of cloud-based HR and payroll software solutions headquartered in Schaumburg, IL. Founded in 1997, Paylocity offers an intuitive, easy-to-use product suite that helps businesses tackle today's challenges while moving them toward the promise of tomorrow. Known for its unique culture and consistently recognized as one of the best places to work, Paylocity accompanies its clients on the journey to create great workplaces and help people achieve their best through automation, data-driven insights, and engagement.
Analysis Results
Intrinsic Value $42.70
Latest Price $241.58
Relative Value 466% 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 28.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 12.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 28.0%, 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 129 114
2024 165 130
2025 211 147
2026 270 167
2027 346 190
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3290 million. This corresponds to a present value of 1600 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 749 million. Adding in the terminal value gives a total present value of 2350 million.

There are presently 55.1 million outstanding shares, so the intrinsic value per share is 42.7.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 4,231,683,000
Current Cash 139,756,000
Current Liabilities 4,120,534,000
Current Debt 0
Non-Cash Working Capital (NCWC) -28,607,000
Change in NCWC 12,269,000
EBIT 84,594,000
Tax Provision -7,180,000
Depreciation and Amortization 50,218,000
Capital Expenditure -52,584,000
Unlevered Free Cash Flow 94,497,000
Current Assets 2,032,883,000
Current Cash 206,743,000
Current Liabilities 1,867,016,000
Current Debt 0
Non-Cash Working Capital (NCWC) -40,876,000
Change in NCWC -9,683,000
EBIT 58,043,000
Tax Provision -13,715,000
Depreciation and Amortization 42,972,000
Capital Expenditure -9,461,000
Unlevered Free Cash Flow 81,871,000
Current Assets 1,663,154,000
Current Cash 285,407,000
Current Liabilities 1,408,940,000
Current Debt 0
Non-Cash Working Capital (NCWC) -31,193,000
Change in NCWC -9,544,000
EBIT 66,171,000
Tax Provision 2,663,000
Depreciation and Amortization 37,913,000
Capital Expenditure -16,578,000
Unlevered Free Cash Flow 75,336,573
Current Assets 1,596,189,000
Current Cash 161,790,000
Current Liabilities 1,456,048,000
Current Debt 0
Non-Cash Working Capital (NCWC) -21,649,000
Change in NCWC 8,149,000
EBIT 56,224,000
Tax Provision 4,223,000
Depreciation and Amortization 34,564,000
Capital Expenditure -11,280,000
Unlevered Free Cash Flow 83,566,555
Current Assets 1,378,240,000
Current Cash 137,193,000
Current Liabilities 1,270,845,000
Current Debt 0
Non-Cash Working Capital (NCWC) -29,798,000
Change in NCWC -14,370,000
EBIT 15,949,000
Tax Provision -21,847,000
Depreciation and Amortization 30,202,000
Capital Expenditure -21,676,000
Unlevered Free Cash Flow 10,105,000
Current Assets 1,062,846,000
Current Cash 103,468,000
Current Liabilities 974,806,000
Current Debt 0
Non-Cash Working Capital (NCWC) -15,428,000
Change in NCWC 2,082,000
EBIT 7,296,000
Tax Provision 651,000
Depreciation and Amortization 21,027,000
Capital Expenditure -21,338,000
Unlevered Free Cash Flow 8,422,449
Current Assets 1,335,208,000
Current Cash 86,496,000
Current Liabilities 1,266,222,000
Current Debt 0
Non-Cash Working Capital (NCWC) -17,510,000
Change in NCWC -5,548,000
EBIT -3,550,000
Tax Provision 177,000
Depreciation and Amortization 13,873,000
Capital Expenditure -16,083,000
Unlevered Free Cash Flow -11,308,000
Current Assets 678,783,000
Current Cash 81,258,000
Current Liabilities 609,487,000
Current Debt 0
Non-Cash Working Capital (NCWC) -11,962,000
Change in NCWC -251,000
EBIT -13,921,000
Tax Provision 105,000
Depreciation and Amortization 8,609,000
Capital Expenditure -9,020,000
Unlevered Free Cash Flow -14,583,000

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