Discounted Cash Flow (DCF) Analysis Levered

Maximus, Inc. (MMS)

$83.84

+0.18 (+0.22%)
All numbers are in Millions, Currency in USD
Stock DCF: 184.89 | 83.84 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,886.823,461.544,254.484,631.024,904.735,610.726,418.347,342.208,399.059,608.02
Revenue (%)
Operating Cash Flow 356.73244.59517.32289.84314.34496.55568.02649.79743.32850.31
Operating Cash Flow (%)
Capital Expenditure -66.85-40.71-36.57-56.14-90.69-83.18-95.15-108.85-124.52-142.44
Capital Expenditure (%)
Free Cash Flow 289.88203.89480.76233.69223.65413.37472.87540.94618.80707.87

Weighted Average Cost Of Capital

Share price $ 83.84
Beta 0.724
Diluted Shares Outstanding 61.45
Cost of Debt
Tax Rate 23.06
After-tax Cost of Debt 4.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.576
Total Debt 1,429.21
Total Equity 5,151.97
Total Capital 6,581.18
Debt Weighting 21.72
Equity Weighting 78.28
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 2,886.823,461.544,254.484,631.024,904.735,610.726,418.347,342.208,399.059,608.02
Operating Cash Flow 356.73244.59517.32289.84314.34496.55568.02649.79743.32850.31
Capital Expenditure -66.85-40.71-36.57-56.14-90.69-83.18-95.15-108.85-124.52-142.44
Free Cash Flow 289.88203.89480.76233.69223.65413.37472.87540.94618.80707.87
WACC
PV LFCF 386.62413.64442.56473.50506.59
SUM PV LFCF 2,222.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.92
Free cash flow (t + 1) 722.03
Terminal Value 14,675.42
Present Value of Terminal Value 10,502.57

Intrinsic Value

Enterprise Value 12,725.48
Net Debt 1,363.81
Equity Value 11,361.68
Shares Outstanding 61.45
Equity Value Per Share 184.89