Discounted Cash Flow (DCF) Analysis Levered

Paychex, Inc. (PAYX)

$117.675

-0.90 (-0.76%)
All numbers are in Millions, Currency in USD
Stock DCF: 82.42 | 117.675 | 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 3,380.903,772.504,040.504,056.804,611.704,989.505,398.245,840.476,318.936,836.58
Revenue (%)
Operating Cash Flow 1,276.401,271.501,440.901,260.301,505.501,704.721,844.371,995.462,158.932,335.80
Operating Cash Flow (%)
Capital Expenditure -154-123.80-127-114.60-132.60-166.45-180.09-194.84-210.80-228.07
Capital Expenditure (%)
Free Cash Flow 1,122.401,147.701,313.901,145.701,372.901,538.271,664.291,800.631,948.132,107.73

Weighted Average Cost Of Capital

Share price $ 117.675
Beta 0.995
Diluted Shares Outstanding 363.10
Cost of Debt
Tax Rate 23.67
After-tax Cost of Debt 3.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.318
Total Debt 881.20
Total Equity 42,727.79
Total Capital 43,608.99
Debt Weighting 2.02
Equity Weighting 97.98
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 3,380.903,772.504,040.504,056.804,611.704,989.505,398.245,840.476,318.936,836.58
Operating Cash Flow 1,276.401,271.501,440.901,260.301,505.501,704.721,844.371,995.462,158.932,335.80
Capital Expenditure -154-123.80-127-114.60-132.60-166.45-180.09-194.84-210.80-228.07
Free Cash Flow 1,122.401,147.701,313.901,145.701,372.901,538.271,664.291,800.631,948.132,107.73
WACC
PV LFCF 958.14957.98957.82957.66957.50
SUM PV LFCF 7,105.44

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.21
Free cash flow (t + 1) 2,149.88
Terminal Value 34,619.68
Present Value of Terminal Value 23,333.84

Intrinsic Value

Enterprise Value 30,439.28
Net Debt 511.20
Equity Value 29,928.08
Shares Outstanding 363.10
Equity Value Per Share 82.42