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ePlus Inc – Business to Business Electronic Markets
ePlus is a leading consultative technology solutions provider that helps customers imagine, implement, and achieve more from their technology. With the highest certifications from top technology partners and lifecycle services expertise across key areas including security, cloud, data center, collaboration, networking and emerging technologies, ePlus transforms IT from a cost center to a business enabler. Founded in 1990, ePlus has more than 1,400 associates serving a diverse set of customers in the U.S., Europe, and Asia-Pac. The Company is headquartered at 13595 Dulles Technology Drive, Herndon, VA, 20171.
Analysis Results
Intrinsic Value $279.23
Latest Price $52.82
Relative Value 81% 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 21.9%.

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 21.9%, 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 248 230
2024 302 259
2025 368 293
2026 449 331
2027 547 374
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 9470 million. This corresponds to a present value of 6000 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1490 million. Adding in the terminal value gives a total present value of 7490 million.

There are presently 26.8 million outstanding shares, so the intrinsic value per share is 279.23.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 897,482,000
Current Cash 155,378,000
Current Liabilities 460,036,000
Current Debt 169,709,000
Non-Cash Working Capital (NCWC) 451,777,000
Change in NCWC 108,609,000
EBIT 149,219,000
Tax Provision 41,284,000
Depreciation and Amortization 24,305,000
Capital Expenditure -23,182,000
Unlevered Free Cash Flow 217,010,712
Current Assets 777,594,000
Current Cash 129,562,000
Current Liabilities 459,364,000
Current Debt 154,500,000
Non-Cash Working Capital (NCWC) 343,168,000
Change in NCWC -28,062,000
EBIT 108,340,000
Tax Provision 32,509,000
Depreciation and Amortization 19,991,000
Capital Expenditure -11,513,000
Unlevered Free Cash Flow 55,810,935
Current Assets 649,798,000
Current Cash 86,231,000
Current Liabilities 386,639,000
Current Debt 194,302,000
Non-Cash Working Capital (NCWC) 371,230,000
Change in NCWC 65,566,000
EBIT 97,853,000
Tax Provision 26,877,000
Depreciation and Amortization 19,156,000
Capital Expenditure -7,009,000
Unlevered Free Cash Flow 148,158,512
Current Assets 560,103,000
Current Cash 79,816,000
Current Liabilities 328,851,000
Current Debt 154,228,000
Non-Cash Working Capital (NCWC) 305,664,000
Change in NCWC 54,723,000
EBIT 81,482,000
Tax Provision 23,038,000
Depreciation and Amortization 18,639,000
Capital Expenditure -21,997,000
Unlevered Free Cash Flow 111,077,519
Current Assets 568,124,000
Current Cash 118,198,000
Current Liabilities 353,300,000
Current Debt 154,315,000
Non-Cash Working Capital (NCWC) 250,941,000
Change in NCWC -19,736,000
EBIT 85,434,000
Tax Provision 28,769,000
Depreciation and Amortization 15,827,000
Capital Expenditure -13,968,000
Unlevered Free Cash Flow 38,258,854
Current Assets 597,324,000
Current Cash 109,760,000
Current Liabilities 376,492,000
Current Debt 159,605,000
Non-Cash Working Capital (NCWC) 270,677,000
Change in NCWC 10,690,000
EBIT 87,275,000
Tax Provision 35,556,000
Depreciation and Amortization 11,731,000
Capital Expenditure -19,419,000
Unlevered Free Cash Flow 54,240,792
Current Assets 477,976,000
Current Cash 94,766,000
Current Liabilities 273,446,000
Current Debt 150,223,000
Non-Cash Working Capital (NCWC) 259,987,000
Change in NCWC 21,103,000
EBIT 77,529,000
Tax Provision 31,004,000
Depreciation and Amortization 15,980,000
Capital Expenditure -25,871,000
Unlevered Free Cash Flow 57,009,285
Current Assets 444,277,000
Current Cash 76,175,000
Current Liabilities 258,085,000
Current Debt 128,867,000
Non-Cash Working Capital (NCWC) 238,884,000
Change in NCWC 12,139,000
EBIT 73,089,000
Tax Provision 32,473,000
Depreciation and Amortization 15,575,000
Capital Expenditure -11,916,000
Unlevered Free Cash Flow 58,580,165
Current Assets 425,259,000
Current Cash 80,179,000
Current Liabilities 244,118,000
Current Debt 125,783,000
Non-Cash Working Capital (NCWC) 226,745,000
Change in NCWC 68,896,000
EBIT 62,046,000
Tax Provision 24,825,000
Depreciation and Amortization 14,755,000
Capital Expenditure -15,397,000
Unlevered Free Cash Flow 104,670,329
Current Assets 298,406,000
Current Cash 53,702,000
Current Liabilities 194,845,000
Current Debt 107,990,000
Non-Cash Working Capital (NCWC) 157,849,000
Change in NCWC 13,798,000
EBIT 60,613,000
Tax Provision 23,915,000
Depreciation and Amortization 12,168,000
Capital Expenditure -15,584,000
Unlevered Free Cash Flow 46,319,540
Current Assets 279,534,000
Current Cash 41,174,000
Current Liabilities 208,275,000
Current Debt 113,966,000
Non-Cash Working Capital (NCWC) 144,051,000
Change in NCWC 56,171,000
EBIT 41,004,000
Tax Provision 16,207,000
Depreciation and Amortization 9,365,000
Capital Expenditure -7,655,000
Unlevered Free Cash Flow 82,092,362

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