DCF Tool

USPH

U.S. Physical Therapy, Inc. – All Other Outpatient Care Centers
Founded in 1990, U.S. Physical Therapy, Inc. operates 548 outpatient physical therapy clinics in 39 states. The Company's clinics provide preventative and post-operative care for a variety of orthopedic-related disorders and sports-related injuries, treatment for neurologically-related injuries and rehabilitation of injured workers. In addition to owning and operating clinics, the Company manages 38 physical therapy facilities for unaffiliated third parties, including hospitals and physician groups. The Company also has an industrial injury prevention business which provides onsite services for clients' employees including injury prevention and rehabilitation, performance optimization, post-offer employment testing, functional capacity evaluations, and ergonomic assessments.
Analysis Results
Intrinsic Value $187.01
Latest Price $87.20
Relative Value 53% 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 12.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 12.2%, 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 75.4 71.0
2023 84.6 75.0
2024 94.9 79.3
2025 107 83.8
2026 120 88.5
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 2910 million. This corresponds to a present value of 2030 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 398 million. Adding in the terminal value gives a total present value of 2430 million.

There are presently 13.0 million outstanding shares, so the intrinsic value per share is 187.01.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 95,166,000
Current Cash 28,567,000
Current Liabilities 83,481,000
Current Debt 830,000
Non-Cash Working Capital (NCWC) -16,052,000
Change in NCWC 17,823,000
EBIT 70,791,000
Tax Provision 15,272,000
Depreciation and Amortization 11,591,000
Capital Expenditure -8,201,000
Unlevered Free Cash Flow 77,233,791
Current Assets 87,636,000
Current Cash 32,918,000
Current Liabilities 93,492,000
Current Debt 4,899,000
Non-Cash Working Capital (NCWC) -33,875,000
Change in NCWC -35,878,000
EBIT 56,344,000
Tax Provision 13,022,000
Depreciation and Amortization 10,533,000
Capital Expenditure -7,639,000
Unlevered Free Cash Flow 12,160,519
Current Assets 85,386,000
Current Cash 23,548,000
Current Liabilities 60,563,000
Current Debt 728,000
Non-Cash Working Capital (NCWC) 2,003,000
Change in NCWC -13,331,000
EBIT 67,450,000
Tax Provision 13,647,000
Depreciation and Amortization 10,095,000
Capital Expenditure -10,189,000
Unlevered Free Cash Flow 41,043,162
Current Assets 79,214,000
Current Cash 23,368,000
Current Liabilities 41,946,000
Current Debt 1,434,000
Non-Cash Working Capital (NCWC) 15,334,000
Change in NCWC -4,307,000
EBIT 60,305,000
Tax Provision 11,369,000
Depreciation and Amortization 9,755,000
Capital Expenditure -7,193,000
Unlevered Free Cash Flow 47,173,250
Current Assets 77,081,000
Current Cash 21,933,000
Current Liabilities 39,551,000
Current Debt 4,044,000
Non-Cash Working Capital (NCWC) 19,641,000
Change in NCWC -2,886,000
EBIT 55,327,000
Tax Provision 6,032,000
Depreciation and Amortization 9,710,000
Capital Expenditure -7,095,000
Unlevered Free Cash Flow 45,169,388
Current Assets 65,964,000
Current Cash 20,047,000
Current Liabilities 24,617,000
Current Debt 1,227,000
Non-Cash Working Capital (NCWC) 22,527,000
Change in NCWC -3,645,000
EBIT 49,664,000
Tax Provision 11,880,000
Depreciation and Amortization 8,779,000
Capital Expenditure -8,260,000
Unlevered Free Cash Flow 31,071,702
Current Assets 60,182,000
Current Cash 15,778,000
Current Liabilities 19,007,000
Current Debt 775,000
Non-Cash Working Capital (NCWC) 26,172,000
Change in NCWC 10,213,000
EBIT 47,505,000
Tax Provision 14,653,000
Depreciation and Amortization 7,952,000
Capital Expenditure -6,263,000
Unlevered Free Cash Flow 44,386,916
Current Assets 54,851,000
Current Cash 14,271,000
Current Liabilities 25,504,000
Current Debt 883,000
Non-Cash Working Capital (NCWC) 15,959,000
Change in NCWC 1,544,000
EBIT 45,937,000
Tax Provision 14,274,000
Depreciation and Amortization 6,740,000
Capital Expenditure -5,167,000
Unlevered Free Cash Flow 34,384,333
Current Assets 49,660,000
Current Cash 12,898,000
Current Liabilities 23,172,000
Current Debt 825,000
Non-Cash Working Capital (NCWC) 14,415,000
Change in NCWC -3,388,000
EBIT 39,016,000
Tax Provision 12,236,000
Depreciation and Amortization 5,562,000
Capital Expenditure -4,637,000
Unlevered Free Cash Flow 24,068,369
Current Assets 45,322,000
Current Cash 11,671,000
Current Liabilities 16,307,000
Current Debt 459,000
Non-Cash Working Capital (NCWC) 17,803,000
Change in NCWC -1,990,000
EBIT 38,014,000
Tax Provision 11,034,000
Depreciation and Amortization 5,287,000
Capital Expenditure -4,234,000
Unlevered Free Cash Flow 25,817,296

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