Loading...

Discounted Cash Flow (DCF) Analysis Unlevered


Paycom Software Inc.

Paycom Software Inc. (PAYC)

Technology

Operating Data

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 (%)
EBITDA 16.1520.2444.37115.66148.02205.14202.55282.74394.67550.92769.03
EBITDA (%)
EBIT 10.6613.0734.96102.04128.62175.46165.79231.42323.04450.93629.46
EBIT (%)
Depreciation 5.497.179.4113.6319.4029.6836.7651.3271.6399.99139.58
Depreciation (%)

Balance Sheet Data

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
Total Cash 13.7325.5150.7160.1746.0845.71117.56164.10229.07319.76446.35
Total Cash (%)
Account Receivables 1.702.792.361.351.563.407.7510.8215.1021.0729.42
Account Receivables (%)
Inventories 0.580.201.100.691.000.792.293.204.476.248.70
Inventories (%)
Accounts Payable 5.023.054.903.756.506.2916.6023.1832.3545.1663.04
Accounts Payable (%)
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 (%)

Weighted Average Cost Of Capital

Share price $ 209.62
Diluted Shares Outstanding 58.58
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 12,280.06
Total Capital 12,312.67
Debt Weighting 0.26
Equity Weighting 99.74
Wacc

Build Up Free Cash

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
EBITDA 16.1520.2444.37115.66148.02205.14202.55282.74394.67550.92769.03
EBIT 10.6613.0734.96102.04128.62175.46165.79231.42323.04450.93629.46
Tax Rate 56.86%41.35%37.52%30.28%3.32%21.55%31.81%31.81%31.81%31.81%31.81%
EBIAT 4.607.6721.8471.14124.35137.65113.04157.79220.27307.47429.20
Depreciation 5.497.179.4113.6319.4029.6836.7651.3271.6399.99139.58
Accounts Receivable --1.090.431.01-0.21-1.84-4.35-3.07-4.28-5.98-8.34
Inventories -0.38-0.900.41-0.300.20-1.50-0.91-1.27-1.77-2.47
Accounts Payable --1.981.85-1.152.74-0.2110.326.579.1812.8117.88
Capital Expenditure --2.652.2926.9615.860.5532.4236.5651.0371.2399.44
UFCF 10.099.5034.93111.99161.84166.03186.69248.27346.56483.76675.28
WACC
PV UFCF 160.10182.58218.56261.63313.19
SUM PV UFCF 691.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 16.61
Free cash flow (t + 1) 702.29
Terminal Value 5,569.29
Present Value of Terminal Value 2,582.98

Intrinsic Value

Enterprise Value 3,274.14
Net Debt -13.09
Equity Value 3,287.23
Shares Outstanding 58.58
Equity Value Per Share 56.11