Discounted Cash Flow (DCF) Analysis Levered

Paycom Software, Inc. (PAYC)

$257.46

+0.38 (+0.15%)
All numbers are in Millions, Currency in USD
Stock DCF: 121.25 | 257.46 | overvalue

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 566.34737.67841.431,055.521,375.221,719.202,149.212,686.793,358.834,198.96
Revenue (%)
Operating Cash Flow 184.82224.26227.21319.36365.10504.90631.19789.07986.441,233.17
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 124.91131.33133.10193.17228.31311.45389.35486.74608.49760.69

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 566.34737.67841.431,055.521,375.221,719.202,149.212,686.793,358.834,198.96
Operating Cash Flow 184.82224.26227.21319.36365.10504.90631.19789.07986.441,233.17
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 124.91131.33133.10193.17228.31311.45389.35486.74608.49760.69
WACC
PV LFCF 279.85314.36353.13396.67445.58
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