Using an unlevered Free Cash Flow to Firm (FCFF) model, we project Broadridge Financial Solutions, Inc.'s cash flows over 5 years with line-by-line expense modeling. Revenue is projected revenue growing from 6.9% to 4.6% annually, with expenses (COGS, SG&A, R&D) held at historical ratios. Depreciation is computed from a vintage matrix based on a 5-year useful life. Working capital is modeled using historical turnover days (DSO 59, DPO 21, DIO 3). At a 8.8% WACC with mid-year discounting, the terminal value (74% of enterprise value) is derived by applying the industry peer median EV/EBITDA multiple of 10.9x to Year 6 EBITDA. After subtracting net debt, the equity value implies a fair price of $96.81 per share, suggesting BR is overvalued by 40.2% at the current price of $162.00.
Adjust parameters to explore scenarios. Changes are for exploration only and do not affect saved valuations.
| 2026 | 2027 | 2028 | 2029 | 2030 | Terminal | |
|---|---|---|---|---|---|---|
| Profit Before Tax | 970 | 1,012 | 1,068 | 1,111 | 1,162 | 1,191 |
| (−) Net Interest | 138 | 143 | 151 | 157 | 165 | 169 |
| (+) D&A | 95 | 99 | 108 | 119 | 123 | 126 |
| EBITDA | 1,203 | 1,254 | 1,328 | 1,388 | 1,450 | 1,487 |
| (−) Tax | 200 | 208 | 220 | 229 | 239 | — |
| (−) CapEx | 117 | 122 | 129 | 134 | 140 | — |
| (−) ΔWC | 77 | 40 | 54 | 42 | 49 | — |
| Free Cash Flow (FCF) | 810 | 884 | 926 | 983 | 1,022 | — |
| Peers' EBITDA Multiple | 10.9x | |||||
| Terminal Value | 16,146 | |||||
| WACC / Discount Rate | 8.77% | |||||
| Timing of FCF (mid year) | 0.5 | 1.5 | 2.5 | 3.5 | 4.5 | 5 |
| Present Value of FCF | 776 | 779 | 750 | 733 | 700 | 10,607 |
| Enterprise Value | 14,346 | |||||
| Projection Period | 3,739 | 26.1% | ||||
| Terminal Value | 10,607 | 73.9% | ||||
| (−) Current Net Debt | 2,898 | |||||
| Equity Value | 11,448 | |||||
| (÷) Outstanding Shares | 118M | |||||
| Fair Price | $97 | -40.3% | ||||
| WACC \ EV/EBITDA Exit Multiple | 6.9x | 8.9x | 10.9x | 12.9x | 14.9x |
|---|---|---|---|---|---|
| 6.8% | $71 | $89 | $107 | $125 | $143 |
| 7.8% | $67 | $84 | $102 | $119 | $136 |
| 8.8% | $64 | $80 | $97 | $113 | $130 |
| 9.8% | $61 | $76 | $92 | $108 | $124 |
| 10.8% | $57 | $73 | $88 | $103 | $118 |
Current price: $162.00. Green = undervalued, Red = overvalued.
Based on default parameters
This is an unlevered Free Cash Flow to Firm (FCFF) model with a 5-year projection period. Revenue, expenses, D&A, and working capital are projected using the same line-by-line approach as the Growth Exit models. The key difference is the terminal value methodology: instead of assuming perpetual cash flow growth, the terminal value is calculated by applying the industry peer median EV/EBITDA multiple to the projected Year 6 EBITDA.
Using a peer exit multiple anchors the terminal value to how the market currently prices comparable companies, rather than relying on a theoretical perpetual growth assumption. This approach captures relative valuation dynamics and is particularly useful when a company is expected to converge toward industry-average profitability over time. The sensitivity matrix shows how fair value changes across different WACC and EV/EBITDA multiple scenarios.