DCF Tool

PRAA

PRA Group Inc – Collection Agencies
As a global leader in acquiring and collecting nonperforming loans, PRA Group, Inc. returns capital to banks and other creditors to help expand financial services for consumers in the Americas and Europe. With thousands of employees worldwide, PRA Group, Inc. companies collaborate with customers to help them resolve their debt.
Analysis Results
Intrinsic Value $192.95
Latest Price $38.94
Relative Value 80% 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 -3.1%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -3.1%, 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 304 292
2023 295 271
2024 286 252
2025 277 234
2026 268 217
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 8050 million. This corresponds to a present value of 6250 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1270 million. Adding in the terminal value gives a total present value of 7520 million.

There are presently 39.0 million outstanding shares, so the intrinsic value per share is 192.95.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 3,649,992,000
Current Cash 180,561,000
Current Liabilities 275,522,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,193,909,000
Change in NCWC -103,390,000
EBIT 177,092,000
Tax Provision 54,817,000
Depreciation and Amortization 15,256,000
Capital Expenditure -11,212,000
Unlevered Free Cash Flow 38,965,960
Current Assets 3,726,716,000
Current Cash 164,372,000
Current Liabilities 265,045,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,297,299,000
Change in NCWC -41,915,000
EBIT 280,404,000
Tax Provision 41,203,000
Depreciation and Amortization 18,465,000
Capital Expenditure -17,230,000
Unlevered Free Cash Flow 184,429,611
Current Assets 3,718,639,000
Current Cash 175,950,000
Current Liabilities 203,475,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,339,214,000
Change in NCWC 374,723,000
EBIT 247,687,000
Tax Provision 19,680,000
Depreciation and Amortization 17,464,000
Capital Expenditure -18,033,000
Unlevered Free Cash Flow 580,306,220
Current Assets 3,291,611,000
Current Cash 143,868,000
Current Liabilities 183,252,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,964,491,000
Change in NCWC 355,450,000
EBIT 218,685,000
Tax Provision 13,763,000
Depreciation and Amortization 19,322,000
Capital Expenditure -20,521,000
Unlevered Free Cash Flow 539,306,250
Current Assets 3,008,183,000
Current Cash 198,806,000
Current Liabilities 200,336,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,609,041,000
Change in NCWC 421,874,000
EBIT 211,000,000
Tax Provision -11,536,000
Depreciation and Amortization 19,763,000
Capital Expenditure -22,840,000
Unlevered Free Cash Flow 629,797,000
Current Assets 2,535,119,000
Current Cash 162,830,000
Current Liabilities 185,122,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,187,167,000
Change in NCWC 120,363,000
EBIT 218,206,000
Tax Provision 43,191,000
Depreciation and Amortization 24,359,000
Capital Expenditure -14,160,000
Unlevered Free Cash Flow 278,479,183
Current Assets 2,379,772,000
Current Cash 145,171,000
Current Liabilities 167,797,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,066,804,000
Change in NCWC 190,548,000
EBIT 310,344,000
Tax Provision 89,391,000
Depreciation and Amortization 19,874,000
Capital Expenditure -14,454,000
Unlevered Free Cash Flow 398,585,434
Current Assets 2,144,113,000
Current Cash 129,364,000
Current Liabilities 138,493,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,876,256,000
Change in NCWC 681,540,000
EBIT 342,068,000
Tax Provision 124,508,000
Depreciation and Amortization 18,414,000
Capital Expenditure -24,385,000
Unlevered Free Cash Flow 876,147,421
Current Assets 1,426,625,000
Current Cash 162,004,000
Current Liabilities 69,905,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,194,716,000
Change in NCWC 152,316,000
EBIT 303,928,000
Tax Provision 106,146,000
Depreciation and Amortization 14,385,000
Capital Expenditure -15,875,000
Unlevered Free Cash Flow 340,784,623
Current Assets 1,122,124,000
Current Cash 32,687,000
Current Liabilities 47,037,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,042,400,000
Change in NCWC 150,464,000
EBIT 216,064,000
Tax Provision 80,934,000
Depreciation and Amortization 14,515,000
Capital Expenditure -7,115,000
Unlevered Free Cash Flow 289,463,572

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