Discounted Cash Flow (DCF) Analysis Levered

Paycom Software, Inc. (PAYC)

$302.95

-4.49 (-1.46%)

All numbers are in Millions, Currency in USD

Stock DCF: 134.70 | 302.95 | 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	566.34	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	-132.68	-192.42	-240.55	-300.72	-375.94	-469.97
Capital Expenditure (%)
Free Cash Flow	124.91	131.33	133.10	193.17	232.42	312.48	390.64	488.35	610.50	763.20

Weighted Average Cost Of Capital

Share price	$ 302.95
Beta	1.409
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	10.434
Total Debt	29
Total Equity	17,624.12
Total Capital	17,653.12
Debt Weighting	0.16
Equity Weighting	99.84
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	-132.68	-192.42	-240.55	-300.72	-375.94	-469.97
Free Cash Flow	124.91	131.33	133.10	193.17	232.42	312.48	390.64	488.35	610.50	763.20
WACC
PV LFCF						282.97	320.33	362.64	410.52	464.73
SUM PV LFCF										1,841.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.43
Free cash flow (t + 1)	778.47
Terminal Value	9,234.47
Present Value of Terminal Value	5,623.11

Intrinsic Value

Enterprise Value	7,464.30
Net Debt	-371.73
Equity Value	7,836.03
Shares Outstanding	58.17
Equity Value Per Share	134.70