Discounted Cash Flow (DCF) Analysis Levered

Paycom Software, Inc. (PAYC)

$269.66

+0.72 (+0.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 107.10 | 269.66 | overvalue

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 433.05566.34737.67841.431,055.521,320.841,652.842,068.292,588.163,238.71
Revenue (%)
Operating Cash Flow 130.60184.82224.26227.21319.36397.45497.35622.36778.79974.54
Operating Cash Flow (%)
Capital Expenditure -59.39-59.91-92.93-94.10-126.19-158.58-198.44-248.32-310.73-388.83
Capital Expenditure (%)
Free Cash Flow 71.21124.91131.33133.10193.17238.87298.91374.04468.06585.71

Weighted Average Cost Of Capital

Share price $ 269.66
Beta 1.538
Diluted Shares Outstanding 58.19
Cost of Debt
Tax Rate 23.44
After-tax Cost of Debt 3.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.116
Total Debt 29.16
Total Equity 15,691.52
Total Capital 15,720.67
Debt Weighting 0.19
Equity Weighting 99.81
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 433.05566.34737.67841.431,055.521,320.841,652.842,068.292,588.163,238.71
Operating Cash Flow 130.60184.82224.26227.21319.36397.45497.35622.36778.79974.54
Capital Expenditure -59.39-59.91-92.93-94.10-126.19-158.58-198.44-248.32-310.73-388.83
Free Cash Flow 71.21124.91131.33133.10193.17238.87298.91374.04468.06585.71
WACC
PV LFCF 216.96246.58280.26318.53362.03
SUM PV LFCF 1,424.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.10
Free cash flow (t + 1) 597.42
Terminal Value 7,375.59
Present Value of Terminal Value 4,558.90

Intrinsic Value

Enterprise Value 5,983.26
Net Debt -248.82
Equity Value 6,232.08
Shares Outstanding 58.19
Equity Value Per Share 107.10