Discounted Cash Flow (DCF) Analysis Levered

Maximus, Inc. (MMS)

$58.71

+0.47 (+0.81%)
All numbers are in Millions, Currency in USD
Stock DCF: 402.98 | 58.71 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,450.962,392.242,886.823,461.544,254.484,904.305,653.366,516.837,512.188,659.56
Revenue (%)
Operating Cash Flow 337.20323.52356.73244.59517.32577.38665.56767.22884.401,019.48
Operating Cash Flow (%)
Capital Expenditure -24.15-26.52-66.85-40.71-36.57-63.22-72.87-84-96.83-111.62
Capital Expenditure (%)
Free Cash Flow 313.05297289.88203.89480.76514.16592.69683.22787.57907.86

Weighted Average Cost Of Capital

Share price $ 58.71
Beta 0.722
Diluted Shares Outstanding 62.37
Cost of Debt
Tax Rate 24.10
After-tax Cost of Debt 0.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.105
Total Debt 1,707.54
Total Equity 3,661.45
Total Capital 5,368.99
Debt Weighting 31.80
Equity Weighting 68.20
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 2,450.962,392.242,886.823,461.544,254.484,904.305,653.366,516.837,512.188,659.56
Operating Cash Flow 337.20323.52356.73244.59517.32577.38665.56767.22884.401,019.48
Capital Expenditure -24.15-26.52-66.85-40.71-36.57-63.22-72.87-84-96.83-111.62
Free Cash Flow 313.05297289.88203.89480.76514.16592.69683.22787.57907.86
WACC
PV LFCF 489.44537.08589.34646.70709.64
SUM PV LFCF 2,972.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.05
Free cash flow (t + 1) 926.01
Terminal Value 30,361.09
Present Value of Terminal Value 23,732.15

Intrinsic Value

Enterprise Value 26,704.35
Net Debt 1,572.48
Equity Value 25,131.87
Shares Outstanding 62.37
Equity Value Per Share 402.98