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Metrics | Range | Conclusion |
---|---|---|
Selected LTM EBIT Multiple | 21.4x - 23.7x | 22.5x |
Selected Fwd EBIT Multiple | 16.4x - 18.2x | 17.3x |
Fair Value | $128.67 - $143.20 | $135.93 |
Upside | -13.1% - -3.2% | -8.1% |
Benchmarks | Ticker | Full Ticker |
Automatic Data Processing, Inc. | ADP | NasdaqGS:ADP |
Broadridge Financial Solutions, Inc. | BR | NYSE:BR |
Kelly Services, Inc. | KELY.A | NasdaqGS:KELY.A |
Verisk Analytics, Inc. | VRSK | NasdaqGS:VRSK |
SS&C Technologies Holdings, Inc. | SSNC | NasdaqGS:SSNC |
Paychex, Inc. | PAYX | NasdaqGS:PAYX |
- | - | - |
Select LTM EBIT Multiple | |||||||
Benchmark Companies | |||||||
ADP | BR | KELY.A | VRSK | SSNC | PAYX | ||
NasdaqGS:ADP | NYSE:BR | NasdaqGS:KELY.A | NasdaqGS:VRSK | NasdaqGS:SSNC | NasdaqGS:PAYX | ||
Historical EBIT Growth | |||||||
5Y CAGR | 10.6% | 10.6% | -5.0% | 8.9% | 7.6% | 9.8% | |
3Y CAGR | 14.1% | 16.7% | 10.2% | 11.3% | 2.0% | 8.2% | |
Latest Twelve Months | 9.3% | 15.8% | 13.4% | 12.1% | 4.0% | 7.1% | |
Historical EBIT Profit Margin | |||||||
5 Year Average Margin | 24.3% | 14.7% | 1.3% | 44.9% | 22.8% | 39.5% | |
Prior Fiscal Year | 25.3% | 15.4% | 1.4% | 42.3% | 22.0% | 41.2% | |
Latest Fiscal Year | 26.1% | 16.6% | 1.6% | 43.8% | 22.8% | 41.8% | |
Latest Twelve Months | 26.6% | 17.6% | 1.7% | 43.9% | 22.9% | 41.8% | |
Current Trading Multiples | |||||||
EV / LTM Revenue | 6.28x | 4.89x | 0.16x | 15.19x | 4.48x | 10.18x | |
EV / LTM EBITDA | 21.3x | 19.7x | 6.0x | 31.7x | 13.9x | 22.3x | |
EV / LTM EBIT | 23.6x | 27.8x | 9.5x | 34.6x | 19.6x | 24.3x | |
Low | Mid | High | |||||
Benchmark EV / LTM EBIT | 9.5x | 23.6x | 34.6x | ||||
Historical EV / LTM EBIT | 18.8x | 24.3x | 25.8x | ||||
Selected EV / LTM EBIT | 21.4x | 22.5x | 23.7x | ||||
(x) LTM EBIT | 2,329 | 2,329 | 2,329 | ||||
(=) Implied Enterprise Value | 49,877 | 52,502 | 55,127 | ||||
(-) Non-shareholder Claims * | (3,382) | (3,382) | (3,382) | ||||
(=) Equity Value | 46,495 | 49,121 | 51,746 | ||||
(/) Shares Outstanding | 360.2 | 360.2 | 360.2 | ||||
Implied Value Range | 129.07 | 136.35 | 143.64 | ||||
FX Rate: USD/USD | 1.0 | 1.0 | 1.0 | Market Price | |||
Implied Value Range (Trading Cur) | 129.07 | 136.35 | 143.64 | 147.99 | |||
Upside / (Downside) | -12.8% | -7.9% | -2.9% |
Equity Waterfall | |||||||
Benchmark Companies | |||||||
(in millions) | ADP | BR | KELY.A | VRSK | SSNC | PAYX | |
Enterprise Value | 126,966 | 32,842 | 710 | 44,280 | 27,103 | 56,694 | |
(+) Cash & Short Term Investments | 2,681 | 318 | 28 | 1,113 | 480 | 1,663 | |
(+) Investments & Other | 0 | 280 | 0 | 223 | 519 | 0 | |
(-) Debt | (4,367) | (3,641) | (266) | (3,935) | (7,017) | (5,045) | |
(-) Other Liabilities | 0 | 0 | 0 | (1) | (75) | 0 | |
(-) Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 | |
(-) Other | 0 | 0 | 0 | 0 | 0 | 0 | |
Value of Common Equity | 125,280 | 29,799 | 472 | 41,680 | 21,011 | 53,312 | |
(/) Shares Outstanding | 405.9 | 117.5 | 35.2 | 139.9 | 246.7 | 360.2 | |
Implied Stock Price | 308.63 | 253.69 | 13.40 | 297.96 | 85.18 | 147.99 | |
FX Conversion Rate to Trading Currency | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |
Implied Stock Price (Trading Cur) | 308.63 | 253.69 | 13.40 | 297.96 | 85.18 | 147.99 | |
Trading Currency | USD | USD | USD | USD | USD | USD | |
FX Rate to Reporting Currency | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 |