DCF Tool

PRG

PROG Holdings Inc – Other Commercial and Industrial Machinery and Equipment Rental and Leasing
Headquartered in SALT LAKE CITY, PROG Holdings, Inc. is the holding company of Progressive Leasing, a leading provider of lease-purchase solutions for consumers at the point of sale at many national, regional and local retailers and e-commerce websites. Progressive Leasing offers a lease-to-own payment solution for consumers to acquire furniture, appliances, jewelry, electronics, bedding, cell phones, wheel and tire and other large ticket consumer durables through over 20,000 locations in 46 states as well as with e-commerce POS sites. Vive Financial provides a variety of second-look credit products that are originated through federally insured banks.
Analysis Results
Intrinsic Value $1,360.42
Latest Price $14.98
Relative Value 99% undervalued
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Cash Flow (Billions)
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 11.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.3%, 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 (billion) Present value (billion)
2022 2.76 2.57
2023 3.07 2.67
2024 3.42 2.77
2025 3.8 2.88
2026 4.23 2.99
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 83.1 billion. This corresponds to a present value of 54.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 13.9 billion. Adding in the terminal value gives a total present value of 68.7 billion.

There are presently 50.5 million outstanding shares, so the intrinsic value per share is 1360.42.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,119,536,000
Current Cash 170,159,000
Current Liabilities 181,024,000
Current Debt 0
Non-Cash Working Capital (NCWC) 768,353,000
Change in NCWC 119,472,000
EBIT 333,527,000
Tax Provision 84,647,000
Depreciation and Amortization 1,853,268,000
Capital Expenditure -9,555,000
Unlevered Free Cash Flow 2,210,692,146
Current Assets 810,340,000
Current Cash 36,645,000
Current Liabilities 124,814,000
Current Debt 0
Non-Cash Working Capital (NCWC) 648,881,000
Change in NCWC 1,300,904,000
EBIT 288,881,000
Tax Provision 37,949,000
Depreciation and Amortization 2,257,257,000
Capital Expenditure -64,345,000
Unlevered Free Cash Flow 3,742,329,864
Current Assets 255,857,000
Current Cash 57,755,000
Current Liabilities 850,125,000
Current Debt 0
Non-Cash Working Capital (NCWC) -652,023,000
Change in NCWC -214,251,000
EBIT 313,196,000
Tax Provision 61,316,000
Depreciation and Amortization 2,077,419,000
Capital Expenditure -92,963,000
Unlevered Free Cash Flow 1,876,435,380
Current Assets 218,738,000
Current Cash 15,278,000
Current Liabilities 641,232,000
Current Debt 0
Non-Cash Working Capital (NCWC) -437,772,000
Change in NCWC -128,332,000
EBIT 288,597,000
Tax Provision 55,994,000
Depreciation and Amortization 1,822,054,000
Capital Expenditure -78,845,000
Unlevered Free Cash Flow 1,839,400,074
Current Assets 357,444,000
Current Cash 71,422,000
Current Liabilities 595,462,000
Current Debt 0
Non-Cash Working Capital (NCWC) -309,440,000
Change in NCWC 134,404,000
EBIT 272,158,000
Tax Provision -52,959,000
Depreciation and Amortization 1,531,203,000
Capital Expenditure -57,973,000
Unlevered Free Cash Flow 1,879,792,000
Current Assets 521,545,000
Current Cash 329,080,000
Current Liabilities 636,309,000
Current Debt 0
Non-Cash Working Capital (NCWC) -443,844,000
Change in NCWC -140,445,000
EBIT 256,448,000
Tax Provision 79,139,000
Depreciation and Amortization 1,386,673,000
Capital Expenditure -57,453,000
Unlevered Free Cash Flow 1,352,306,360
Current Assets 415,576,000
Current Cash 37,168,000
Current Liabilities 681,807,000
Current Debt 0
Non-Cash Working Capital (NCWC) -303,399,000
Change in NCWC 92,364,000
EBIT 237,265,000
Tax Provision 77,411,000
Depreciation and Amortization 1,292,847,000
Capital Expenditure -60,557,000
Unlevered Free Cash Flow 1,475,737,877
Current Assets 256,338,000
Current Cash 24,860,000
Current Liabilities 627,241,000
Current Debt 0
Non-Cash Working Capital (NCWC) -395,763,000
Change in NCWC 80,062,000
EBIT 162,339,000
Tax Provision 43,471,000
Depreciation and Amortization 1,018,234,000
Capital Expenditure -47,565,000
Unlevered Free Cash Flow 1,155,084,735
Current Assets 412,166,000
Current Cash 343,482,000
Current Liabilities 544,509,000
Current Debt 0
Non-Cash Working Capital (NCWC) -475,825,000
Change in NCWC -14,707,000
EBIT 221,959,000
Tax Provision 64,294,000
Depreciation and Amortization 685,105,000
Capital Expenditure -58,145,000
Unlevered Free Cash Flow 757,056,766
Current Assets 289,552,000
Current Cash 215,395,000
Current Liabilities 535,275,000
Current Debt 0
Non-Cash Working Capital (NCWC) -461,118,000
Change in NCWC 56,217,000
EBIT 254,600,000
Tax Provision 103,812,000
Depreciation and Amortization 661,433,000
Capital Expenditure -65,073,000
Unlevered Free Cash Flow 811,709,931

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