| Intrinsic Valuation of: PAYX | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 5 | Market Cap | $53B | |||||
| 2021 | - | - (-) | P/E Ratio | 32 | Total Asset | $10B | |||||
| 2022 | $1B | - (-) | Net Income | $2B | Total Debt | $799M | |||||
| 2023 | $1B | 27.5% (12.2%) | EBITDA | $2B | Total Liab | $7B | |||||
| 2024 | $2B | 7.4% (-1.1%) | Opr Margin | 0.41 | Debt/Equity | 0.21 | |||||
| 2025 | $2B | 11.1% (5.4%) | PreTax Margin | 40.48 | BV/Share | 5 | |||||
| 5Y Average FCF | $1B | 15.3% (5.5%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (15.3%) | ||||||||||
| 2026 | $2B | MBG Intrinsic Value | $41 | ||||||||
| 2027 | $2B | ||||||||||
| 2028 | $3B | ||||||||||
| 2029 | $3B | ||||||||||
| 2030 | $4B | ||||||||||
| 2031 | $4B | ||||||||||
| Terminal Value | $85B | Net Worth/Share | $11 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $69B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $1B | $192 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $799M | WACC | 7.3% | 168 | 181 | 196 | 215 | 239 | |||
| Equity Value | $69B | 7.4% | 167 | 179 | 194 | 213 | 236 | ||||
| Shares Outstanding | 360,500,000 | 7.4% | 165 | 178 | 192 | 210 | 233 | ||||
| 7.9% | 152 | 162 | 174 | 188 | 206 | ||||||
| DCF Intrinsic Value | $192 | 8.4% | 140 | 148 | 158 | 170 | 184 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||