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| Metrics | Range | Conclusion |
|---|---|---|
| Selected LTM EBIT Multiple | 29.8x - 32.9x | 31.3x |
| Selected Fwd EBIT Multiple | 20.7x - 22.9x | 21.8x |
| Fair Value | $276.14 - $304.62 | $290.38 |
| Upside | 21.3% - 33.8% | 27.6% |
| Benchmarks | Ticker | Full Ticker |
| Automatic Data Processing, Inc. | ADP | NasdaqGS:ADP |
| Insperity, Inc. | NSP | NYSE:NSP |
| Paychex, Inc. | PAYX | NasdaqGS:PAYX |
| Paylocity Holding Corporation | PCTY | NasdaqGS:PCTY |
| Dayforce Inc. | DAY | NYSE:DAY |
| Paycom Software, Inc. | PAYC | NYSE:PAYC |
| - | - | - |
| Select LTM EBIT Multiple | |||||||
| Benchmark Companies | |||||||
| ADP | NSP | PAYX | PCTY | DAY | PAYC | ||
| NasdaqGS:ADP | NYSE:NSP | NasdaqGS:PAYX | NasdaqGS:PCTY | NYSE:DAY | NYSE:PAYC | ||
| Historical EBIT Growth | |||||||
| 5Y CAGR | 10.6% | -8.9% | 9.6% | 35.4% | 8.6% | 18.0% | |
| 3Y CAGR | 14.1% | -12.3% | 14.2% | 64.1% | NM- | 26.8% | |
| Latest Twelve Months | 11.4% | -46.6% | 5.3% | 25.2% | -24.7% | 14.5% | |
| Historical EBIT Profit Margin | |||||||
| 5 Year Average Margin | 24.1% | 3.7% | 39.2% | 12.6% | 3.2% | 27.0% | |
| Prior Fiscal Year | 25.3% | 3.4% | 40.6% | 13.2% | 8.9% | 26.6% | |
| Latest Fiscal Year | 26.1% | 1.8% | 41.2% | 18.3% | 5.8% | 27.4% | |
| Latest Twelve Months | 26.6% | 1.8% | 41.5% | 18.4% | 5.8% | 27.4% | |
| Current Trading Multiples | |||||||
| EV / LTM Revenue | 6.07x | 0.36x | 9.35x | 7.06x | 5.57x | 6.67x | |
| EV / LTM EBITDA | 20.6x | 16.0x | 20.9x | 34.0x | 40.8x | 21.7x | |
| EV / LTM EBIT | 22.9x | 20.3x | 22.5x | 38.3x | 96.9x | 24.3x | |
| Low | Mid | High | |||||
| Benchmark EV / LTM EBIT | 20.3x | 22.9x | 96.9x | ||||
| Historical EV / LTM EBIT | 24.3x | 51.7x | 123.5x | ||||
| Selected EV / LTM EBIT | 29.8x | 31.3x | 32.9x | ||||
| (x) LTM EBIT | 517 | 517 | 517 | ||||
| (=) Implied Enterprise Value | 15,378 | 16,188 | 16,997 | ||||
| (-) Non-shareholder Claims * | 319 | 319 | 319 | ||||
| (=) Equity Value | 15,697 | 16,506 | 17,316 | ||||
| (/) Shares Outstanding | 56.6 | 56.6 | 56.6 | ||||
| Implied Value Range | 277.46 | 291.76 | 306.07 | ||||
| FX Rate: USD/USD | 1.0 | 1.0 | 1.0 | Market Price | |||
| Implied Value Range (Trading Cur) | 277.46 | 291.76 | 306.07 | 227.60 | |||
| Upside / (Downside) | 21.9% | 28.2% | 34.5% | ||||
| Equity Waterfall | |||||||
| Benchmark Companies | |||||||
| (in millions) | ADP | NSP | PAYX | PCTY | DAY | PAYC | |
| Enterprise Value | 120,870 | 2,371 | 50,846 | 10,580 | 9,802 | 12,558 | |
| (+) Cash & Short Term Investments | 2,216 | 1,055 | 1,601 | 482 | 580 | 402 | |
| (+) Investments & Other | 0 | 0 | 0 | 0 | 0 | 0 | |
| (-) Debt | (4,377) | (454) | (864) | (382) | (1,233) | (83) | |
| (-) Other Liabilities | 0 | 0 | 0 | 0 | 0 | 0 | |
| (-) Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 | |
| (-) Other | 0 | 0 | 0 | 0 | 0 | 0 | |
| Value of Common Equity | 118,709 | 2,972 | 51,583 | 10,681 | 9,149 | 12,876 | |
| (/) Shares Outstanding | 406.9 | 37.6 | 360.2 | 55.9 | 158.3 | 56.6 | |
| Implied Stock Price | 291.76 | 79.00 | 143.21 | 191.11 | 57.81 | 227.60 | |
| FX Conversion Rate to Trading Currency | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |
| Implied Stock Price (Trading Cur) | 291.76 | 79.00 | 143.21 | 191.11 | 57.81 | 227.60 | |
| 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 | |