DCF Tool

TNET

TriNet Group Inc – Human Resources Consulting Services
TriNet provides small and medium-size businesses (SMBs) with full-service HR solutions tailored by industry. To free SMBs from HR complexities, TriNet offers access to human capital expertise, benefits, risk mitigation and compliance, payroll and real-time technology. From Main Street to Wall Street, TriNet empowers SMBs to focus on what matters most-growing their business. TriNet, incredible starts here.
Analysis Results
Intrinsic Value $326.44
Latest Price $75.35
Relative Value 77% 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 28.3%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 28.3%, 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 0.513 0.478
2023 0.659 0.57
2024 0.845 0.681
2025 1.08 0.813
2026 1.39 0.971
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 25.9 billion. This corresponds to a present value of 16.8 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.51 billion. Adding in the terminal value gives a total present value of 20.3 billion.

There are presently 62.3 million outstanding shares, so the intrinsic value per share is 326.44.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 2,439,000,000
Current Cash 747,000,000
Current Liabilities 1,739,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -47,000,000
Change in NCWC -1,000,000
EBIT 455,000,000
Tax Provision 103,000,000
Depreciation and Amortization 94,000,000
Capital Expenditure -40,000,000
Unlevered Free Cash Flow 401,730,158
Current Assets 2,160,000,000
Current Cash 358,000,000
Current Liabilities 1,870,000,000
Current Debt 22,000,000
Non-Cash Working Capital (NCWC) -46,000,000
Change in NCWC -15,000,000
EBIT 368,000,000
Tax Provision 85,000,000
Depreciation and Amortization 81,000,000
Capital Expenditure -36,000,000
Unlevered Free Cash Flow 310,380,952
Current Assets 1,871,000,000
Current Cash 281,000,000
Current Liabilities 1,643,000,000
Current Debt 22,000,000
Non-Cash Working Capital (NCWC) -31,000,000
Change in NCWC 8,000,000
EBIT 268,000,000
Tax Provision 58,000,000
Depreciation and Amortization 57,000,000
Capital Expenditure -45,000,000
Unlevered Free Cash Flow 230,429,629
Current Assets 1,646,000,000
Current Cash 282,000,000
Current Liabilities 1,425,000,000
Current Debt 22,000,000
Non-Cash Working Capital (NCWC) -39,000,000
Change in NCWC 23,000,000
EBIT 251,000,000
Tax Provision 49,000,000
Depreciation and Amortization 46,000,000
Capital Expenditure -43,000,000
Unlevered Free Cash Flow 225,966,804
Current Assets 1,991,000,000
Current Cash 336,000,000
Current Liabilities 1,757,000,000
Current Debt 40,000,000
Non-Cash Working Capital (NCWC) -62,000,000
Change in NCWC -71,326,000
EBIT 217,000,000
Tax Provision 22,000,000
Depreciation and Amortization 35,000,000
Capital Expenditure -38,000,000
Unlevered Free Cash Flow 118,804,000
Current Assets 1,535,354,000
Current Cash 184,004,000
Current Liabilities 1,378,583,000
Current Debt 36,559,000
Non-Cash Working Capital (NCWC) 9,326,000
Change in NCWC 27,750,000
EBIT 123,958,000
Tax Provision 43,046,000
Depreciation and Amortization 39,175,000
Capital Expenditure -39,650,000
Unlevered Free Cash Flow 100,148,328
Current Assets 1,570,520,000
Current Cash 166,178,000
Current Liabilities 1,458,092,000
Current Debt 35,326,000
Non-Cash Working Capital (NCWC) -18,424,000
Change in NCWC 39,602,000
EBIT 78,317,000
Tax Provision 28,315,000
Depreciation and Amortization 52,817,000
Capital Expenditure -18,557,000
Unlevered Free Cash Flow 115,226,061

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