DCF Tool

PCTY

Paylocity Holding Corp – Software Publishers
paylocity has pioneered a unique position in the human capital management industry as being one part payroll company and one part software company. delivering one-of-a-kind cloud technology, accompanied by award winning customer service, paylocity is in a category of its own. in the spring of 2014, paylocity officially went public, trading on the nasdaq under the ticker symbol “pcty.” we are an eight-time inc. magazine winner for being one of america’s fastest growing privately-held companies, as well as a seven-time winner for being one of chicago’s 101 best & brightest companies to work for, and four-time winner for being one of the best places to work in illinois. at paylocity, our mission is to elevate the profession of payroll and human resources out of the back office and into the boardroom where it belongs. we do this by providing clients with the same caliber cloud software solutions found in other critical areas such as sales, finance, and operations. some of our most re
Analysis Results
Intrinsic Value $275.15
Latest Price $159.17
Relative Value 42% 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 33.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 33.3%, 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)
2024 190 182
2025 253 232
2026 337 296
2027 449 378
2028 598 483
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 17900 million. This corresponds to a present value of 13900 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1570 million. Adding in the terminal value gives a total present value of 15500 million.

There are presently 56.2 million outstanding shares, so the intrinsic value per share is 275.15.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,048,437,000
Current Cash 288,767,000
Current Liabilities 2,774,795,000
Current Debt 0
Non-Cash Working Capital (NCWC) -15,125,000
Change in NCWC 13,482,000
EBIT 155,026,000
Tax Provision 17,792,000
Depreciation and Amortization 60,866,000
Capital Expenditure -66,914,000
Unlevered Free Cash Flow 145,070,472
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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