Discounted Cash Flow (DCF) Analysis Levered
Paycom Software, Inc. (PAYC)
$257.46
+0.38 (+0.15%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 566.34 | 737.67 | 841.43 | 1,055.52 | 1,375.22 | 1,719.20 | 2,149.21 | 2,686.79 | 3,358.83 | 4,198.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 184.82 | 224.26 | 227.21 | 319.36 | 365.10 | 504.90 | 631.19 | 789.07 | 986.44 | 1,233.17 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -59.91 | -92.93 | -94.10 | -126.19 | -136.80 | -193.45 | -241.84 | -302.33 | -377.95 | -472.49 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 124.91 | 131.33 | 133.10 | 193.17 | 228.31 | 311.45 | 389.35 | 486.74 | 608.49 | 760.69 |
Weighted Average Cost Of Capital
| Share price | $ 257.46 |
|---|---|
| Beta | 1.420 |
| Diluted Shares Outstanding | 58.17 |
| Cost of Debt | |
| Tax Rate | 27.77 |
| After-tax Cost of Debt | 6.31% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.300 |
| Total Debt | 29 |
| Total Equity | 14,977.74 |
| Total Capital | 15,006.74 |
| Debt Weighting | 0.19 |
| Equity Weighting | 99.81 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 566.34 | 737.67 | 841.43 | 1,055.52 | 1,375.22 | 1,719.20 | 2,149.21 | 2,686.79 | 3,358.83 | 4,198.96 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 184.82 | 224.26 | 227.21 | 319.36 | 365.10 | 504.90 | 631.19 | 789.07 | 986.44 | 1,233.17 |
| Capital Expenditure | -59.91 | -92.93 | -94.10 | -126.19 | -136.80 | -193.45 | -241.84 | -302.33 | -377.95 | -472.49 |
| Free Cash Flow | 124.91 | 131.33 | 133.10 | 193.17 | 228.31 | 311.45 | 389.35 | 486.74 | 608.49 | 760.69 |
| WACC | ||||||||||
| PV LFCF | 279.85 | 314.36 | 353.13 | 396.67 | 445.58 | |||||
| SUM PV LFCF | 1,789.59 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 11.29 |
| Free cash flow (t + 1) | 775.90 |
| Terminal Value | 8,351.99 |
| Present Value of Terminal Value | 4,892.25 |
Intrinsic Value
| Enterprise Value | 6,681.84 |
|---|---|
| Net Debt | -371.73 |
| Equity Value | 7,053.57 |
| Shares Outstanding | 58.17 |
| Equity Value Per Share | 121.25 |