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Discounted Cash Flow (DCF) Analysis Levered


Paycom Software Inc.

Paycom Software Inc. (PAYC)

Technology

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 107.60150.93224.66329.15433.07566.36790.591,103.581,540.492,150.373,001.70
Revenue (%)
Operating Cash Flow 16.9822.3442.9898.81130.14184.80187.69261.99365.71510.50712.60
Operating Cash Flow (%)
Capital Expenditure -16.91-14.26-16.56-43.51-59.37-59.92-92.34-128.90-179.93-251.16-350.60
Capital Expenditure (%)
Free Cash Flow 0.068.0726.4255.3070.76124.8895.34133.09185.78259.33362.00

Weighted Average Cost Of Capital

Share price $ 268.71
Diluted Shares Outstanding 57.71
Cost of Debt
Tax Rate 21.55
After-tax Cost of Debt -1.03
Risk-Free Rate
Market Risk Premium
Cost of Equity 16.64
Total Debt 32.61
Total Equity 15,507.61
Total Capital 15,540.22
Debt Weighting 0.21
Equity Weighting 99.79
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 107.60150.93224.66329.15433.07566.36790.591,103.581,540.492,150.373,001.70
Operating Cash Flow 16.9822.3442.9898.81130.14184.80187.69261.99365.71510.50712.60
Capital Expenditure -16.91-14.26-16.56-43.51-59.37-59.92-92.34-128.90-179.93-251.16-350.60
Free Cash Flow 0.068.0726.4255.3070.76124.8895.34133.09185.78259.33362.00
WACC
PV LFCF 81.7697.86117.13140.21167.82
SUM PV LFCF 375.41

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 16.62
Free cash flow (t + 1) 702.29
Terminal Value 5,564.88
Present Value of Terminal Value 2,579.83

Intrinsic Value

Enterprise Value 3,270.53
Net Debt -13.09
Equity Value 3,283.62
Shares Outstanding 57.71
Equity Value Per Share 30.70