DCF Tool

SPSC

SPS Commerce Inc. – Software Publishers
sps commerce perfects the power of trading partner relationships with the industry's most broadly adopted, retail cloud services platform. as a leader in cloud-based supply chain management solutions, we provide proven integrations and comprehensive retail performance analytics to thousands of customers worldwide. sps commerce has achieved 59 consecutive quarters of revenue growth and is headquartered in minneapolis. for additional information, please contact sps commerce at 866-245-8100 or visit www.spscommerce.com.
Analysis Results
Intrinsic Value $66.50
Latest Price $170.52
Relative Value 156% 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 33.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 10.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 33.0%, 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 87.5 79.3
2024 116 95.5
2025 155 115
2026 206 139
2027 274 167
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3330 million. This corresponds to a present value of 1840 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 595 million. Adding in the terminal value gives a total present value of 2440 million.

There are presently 36.7 million outstanding shares, so the intrinsic value per share is 66.5.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 322,814,000
Current Cash 214,305,000
Current Liabilities 110,642,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,133,000
Change in NCWC 5,606,000
EBIT 71,182,000
Tax Provision 16,190,000
Depreciation and Amortization 28,189,000
Capital Expenditure -19,880,000
Unlevered Free Cash Flow 68,939,232
Current Assets 352,443,000
Current Cash 257,310,000
Current Liabilities 102,872,000
Current Debt 0
Non-Cash Working Capital (NCWC) -7,739,000
Change in NCWC -11,485,000
EBIT 55,085,000
Tax Provision 8,944,000
Depreciation and Amortization 24,914,000
Capital Expenditure -19,588,000
Unlevered Free Cash Flow 39,724,075
Current Assets 271,356,000
Current Cash 187,478,000
Current Liabilities 80,132,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,746,000
Change in NCWC -6,309,000
EBIT 50,158,000
Tax Provision 7,094,000
Depreciation and Amortization 18,665,000
Capital Expenditure -16,467,000
Unlevered Free Cash Flow 39,292,617
Current Assets 291,621,000
Current Cash 213,536,000
Current Liabilities 68,030,000
Current Debt 0
Non-Cash Working Capital (NCWC) 10,055,000
Change in NCWC -4,642,000
EBIT 38,406,000
Tax Provision 8,358,000
Depreciation and Amortization 16,438,000
Capital Expenditure -13,585,000
Unlevered Free Cash Flow 28,986,922
Current Assets 249,615,000
Current Cash 178,396,000
Current Liabilities 56,522,000
Current Debt 0
Non-Cash Working Capital (NCWC) 14,697,000
Change in NCWC 1,707,000
EBIT 26,731,000
Tax Provision 4,468,000
Depreciation and Amortization 12,686,000
Capital Expenditure -13,750,000
Unlevered Free Cash Flow 23,159,670
Current Assets 219,456,000
Current Cash 163,319,000
Current Liabilities 43,147,000
Current Debt 0
Non-Cash Working Capital (NCWC) 12,990,000
Change in NCWC -1,829,000
EBIT 8,428,000
Tax Provision 11,580,000
Depreciation and Amortization 11,782,000
Capital Expenditure -7,271,000
Unlevered Free Cash Flow -470,000
Current Assets 185,933,000
Current Cash 138,953,000
Current Liabilities 32,161,000
Current Debt 0
Non-Cash Working Capital (NCWC) 14,819,000
Change in NCWC 1,322,000
EBIT 7,517,000
Tax Provision 3,140,000
Depreciation and Amortization 11,336,000
Capital Expenditure -8,008,000
Unlevered Free Cash Flow 9,499,951
Current Assets 166,786,000
Current Cash 129,055,000
Current Liabilities 24,234,000
Current Debt 0
Non-Cash Working Capital (NCWC) 13,497,000
Change in NCWC 6,658,000
EBIT 7,023,000
Tax Provision 2,436,000
Depreciation and Amortization 9,572,000
Capital Expenditure -8,757,000
Unlevered Free Cash Flow 12,077,904
Current Assets 162,194,000
Current Cash 130,795,000
Current Liabilities 24,560,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,839,000
Change in NCWC 973,000
EBIT 4,383,000
Tax Provision 1,408,000
Depreciation and Amortization 8,570,000
Capital Expenditure -7,582,000
Unlevered Free Cash Flow 4,843,206
Current Assets 156,075,000
Current Cash 131,294,000
Current Liabilities 18,915,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,866,000
Change in NCWC -5,124,000
EBIT 1,772,000
Tax Provision 686,000
Depreciation and Amortization 8,051,000
Capital Expenditure -5,701,000
Unlevered Free Cash Flow -1,701,822
Current Assets 91,511,000
Current Cash 66,050,000
Current Liabilities 14,471,000
Current Debt 0
Non-Cash Working Capital (NCWC) 10,990,000
Change in NCWC 6,202,000
EBIT 1,572,000
Tax Provision 121,000
Depreciation and Amortization 4,918,000
Capital Expenditure -5,983,000
Unlevered Free Cash Flow 6,567,367

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