DCF Tool

VRRM

Verra Mobility Corp – Data Processing, Hosting, and Related Services
Verra Mobility is committed to developing and using the latest in technology and data intelligence to help make transportation safer and easier. As a global company, Verra Mobility sits at the center of the mobility ecosystem - one that brings together vehicles, devices, information, and people to solve complex challenges faced by its customers and the constituencies they serve. Verra Mobility serves the world's largest commercial fleets and rental car companies to manage tolling transactions and violations for millions of vehicles. As a leading provider of connected systems, Verra Mobility processes millions of transactions each year through connectivity with more than 50 individual tolling authorities and more than 400 issuing authorities. Verra Mobility also fosters the development of safe cities, partnering with law enforcement agencies, transportation departments and school districts across North America operating thousands of red-light, speed, bus lane and school bus stop arm safety cameras. Arizona-based Verra Mobility operates in more than 15 countries.
Analysis Results
Intrinsic Value $8.56
Latest Price $16.42
Relative Value 92% 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 -14.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.4%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -14.2%, 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 110 103
2023 94.1 83.2
2024 80.8 67.1
2025 69.3 54.2
2026 59.5 43.7
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 1390 million. This corresponds to a present value of 960 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 351 million. Adding in the terminal value gives a total present value of 1310 million.

There are presently 153.0 million outstanding shares, so the intrinsic value per share is 8.56.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 348,069,000
Current Cash 101,283,000
Current Liabilities 175,191,000
Current Debt 36,952,000
Non-Cash Working Capital (NCWC) 108,547,000
Change in NCWC -44,295,000
EBIT 111,866,000
Tax Provision 26,452,000
Depreciation and Amortization 116,753,000
Capital Expenditure -24,998,000
Unlevered Free Cash Flow 115,746,679
Current Assets 328,037,000
Current Cash 120,259,000
Current Liabilities 64,040,000
Current Debt 9,104,000
Non-Cash Working Capital (NCWC) 152,842,000
Change in NCWC 88,019,000
EBIT 37,816,000
Tax Provision 5,431,000
Depreciation and Amortization 116,570,000
Capital Expenditure -24,260,000
Unlevered Free Cash Flow 212,714,000
Current Assets 272,438,000
Current Cash 131,513,000
Current Liabilities 104,881,000
Current Debt 28,779,000
Non-Cash Working Capital (NCWC) 64,823,000
Change in NCWC 4,355,670
EBIT 102,353,000
Tax Provision 13,581,000
Depreciation and Amortization 115,566,000
Capital Expenditure -29,685,000
Unlevered Free Cash Flow 162,966,106

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.