Discounted Cash Flow (DCF) Analysis Levered
Paychex, Inc. (PAYX)
$117.675
-0.90 (-0.76%)
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 | 3,380.90 | 3,772.50 | 4,040.50 | 4,056.80 | 4,611.70 | 4,989.50 | 5,398.24 | 5,840.47 | 6,318.93 | 6,836.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,276.40 | 1,271.50 | 1,440.90 | 1,260.30 | 1,505.50 | 1,704.72 | 1,844.37 | 1,995.46 | 2,158.93 | 2,335.80 |
| 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 | 1,122.40 | 1,147.70 | 1,313.90 | 1,145.70 | 1,372.90 | 1,538.27 | 1,664.29 | 1,800.63 | 1,948.13 | 2,107.73 |
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 | 3,380.90 | 3,772.50 | 4,040.50 | 4,056.80 | 4,611.70 | 4,989.50 | 5,398.24 | 5,840.47 | 6,318.93 | 6,836.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,276.40 | 1,271.50 | 1,440.90 | 1,260.30 | 1,505.50 | 1,704.72 | 1,844.37 | 1,995.46 | 2,158.93 | 2,335.80 |
| Capital Expenditure | -154 | -123.80 | -127 | -114.60 | -132.60 | -166.45 | -180.09 | -194.84 | -210.80 | -228.07 |
| Free Cash Flow | 1,122.40 | 1,147.70 | 1,313.90 | 1,145.70 | 1,372.90 | 1,538.27 | 1,664.29 | 1,800.63 | 1,948.13 | 2,107.73 |
| WACC | ||||||||||
| PV LFCF | 958.14 | 957.98 | 957.82 | 957.66 | 957.50 | |||||
| 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 |