Discounted Cash Flow (DCF) Analysis Unlevered

Paycom Software, Inc. (PAYC)

$179.28

-2.01 (-1.11%)
All numbers are in Millions, Currency in USD
Stock DCF: 110.30 | 179.28 | overvalue

Operating Data

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 (%)
EBITDA 205.13269.24239.33323.18484.81574.33717.99897.571,122.081,402.74
EBITDA (%)
EBIT 175.48227.03185.95255.96392.11469.76587.26734.16917.791,147.35
EBIT (%)
Depreciation 29.6642.2153.3767.2292.70104.57130.72163.42204.29255.39
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 45.72133.67151.71277.98400.73342.80428.54535.73669.73837.25
Total Cash (%)
Account Receivables 7.3813.3219.5825.9028.4334.2342.7953.5066.8883.61
Account Receivables (%)
Inventories 0.801.161.151.131.612.262.833.544.425.53
Inventories (%)
Accounts Payable 6.295.056.795.7716.0514.8418.5523.1928.9936.24
Accounts Payable (%)
Capital Expenditure -59.91-92.93-94.10-126.19-136.80-193.45-241.84-302.33-377.95-472.49
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 179.28
Beta 1.398
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 10.881
Total Debt 29
Total Equity 10,429.61
Total Capital 10,458.61
Debt Weighting 0.28
Equity Weighting 99.72
Wacc

Build Up Free Cash

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
EBITDA 205.13269.24239.33323.18484.81574.33717.99897.571,122.081,402.74
EBIT 175.48227.03185.95255.96392.11469.76587.26734.16917.791,147.35
Tax Rate 21.55%20.13%22.85%23.44%27.77%23.15%23.15%23.15%23.15%23.15%
EBIAT 137.67181.33143.47195.96283.22361.02451.33564.22705.34881.77
Depreciation 29.6642.2153.3767.2292.70104.57130.72163.42204.29255.39
Accounts Receivable --5.94-6.26-6.33-2.52-5.80-8.56-10.70-13.38-16.73
Inventories --0.360.010.02-0.48-0.66-0.57-0.71-0.89-1.11
Accounts Payable --1.241.74-1.0210.28-1.213.714.645.807.25
Capital Expenditure -59.91-92.93-94.10-126.19-136.80-193.45-241.84-302.33-377.95-472.49
UFCF 107.42123.0698.22129.67246.40264.46334.79418.53523.22654.09
WACC
PV UFCF 238.53272.36307.10346.28390.45
SUM PV UFCF 1,554.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.87
Free cash flow (t + 1) 667.17
Terminal Value 7,521.64
Present Value of Terminal Value 4,489.96

Intrinsic Value

Enterprise Value 6,044.68
Net Debt -371.73
Equity Value 6,416.41
Shares Outstanding 58.17
Equity Value Per Share 110.30