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Metrics | Range | Conclusion |
---|---|---|
Selected LTM EBIT Multiple | 19.3x - 21.4x | 20.3x |
Selected Fwd EBIT Multiple | 11.8x - 13.0x | 12.4x |
Fair Value | $73.33 - $79.35 | $76.34 |
Upside | -16.5% - -9.6% | -13.1% |
Benchmarks | Ticker | Full Ticker |
Resources Connection, Inc. | RGP | NasdaqGS:RGP |
Heidrick & Struggles International, Inc. | HSII | NasdaqGS:HSII |
Korn Ferry | KFY | NYSE:KFY |
Barrett Business Services, Inc. | BBSI | NasdaqGS:BBSI |
Kforce Inc. | KFRC | NYSE:KFRC |
Insperity, Inc. | NSP | NYSE:NSP |
- | - | - |
Select LTM EBIT Multiple | |||||||
Benchmark Companies | |||||||
RGP | HSII | KFY | BBSI | KFRC | NSP | ||
NasdaqGS:RGP | NasdaqGS:HSII | NYSE:KFY | NasdaqGS:BBSI | NYSE:KFRC | NYSE:NSP | ||
Historical EBIT Growth | |||||||
5Y CAGR | -9.3% | 2.4% | 2.3% | 3.4% | -1.8% | -8.9% | |
3Y CAGR | -5.2% | -12.5% | 14.7% | 10.8% | -13.2% | -12.3% | |
Latest Twelve Months | -83.9% | -9.3% | 19.4% | -1.4% | -20.0% | -46.6% | |
Historical EBIT Profit Margin | |||||||
5 Year Average Margin | 6.9% | 9.0% | 12.5% | 5.0% | 6.1% | 3.7% | |
Prior Fiscal Year | 9.7% | 8.2% | 12.7% | 5.7% | 5.7% | 3.4% | |
Latest Fiscal Year | 4.8% | 6.9% | 9.8% | 5.2% | 5.0% | 1.8% | |
Latest Twelve Months | 1.1% | 6.9% | 11.6% | 5.2% | 5.0% | 1.8% | |
Current Trading Multiples | |||||||
EV / LTM Revenue | 0.22x | 0.34x | 1.10x | 0.80x | 0.64x | 0.39x | |
EV / LTM EBITDA | 8.4x | 3.9x | 8.3x | 14.5x | 12.3x | 17.2x | |
EV / LTM EBIT | 19.2x | 4.9x | 9.4x | 15.4x | 12.9x | 21.8x | |
Low | Mid | High | |||||
Benchmark EV / LTM EBIT | 4.9x | 12.9x | 19.2x | ||||
Historical EV / LTM EBIT | 14.7x | 19.3x | 26.9x | ||||
Selected EV / LTM EBIT | 19.3x | 20.3x | 21.4x | ||||
(x) LTM EBIT | 117 | 117 | 117 | ||||
(=) Implied Enterprise Value | 2,260 | 2,379 | 2,498 | ||||
(-) Non-shareholder Claims * | 601 | 601 | 601 | ||||
(=) Equity Value | 2,861 | 2,980 | 3,099 | ||||
(/) Shares Outstanding | 37.2 | 37.2 | 37.2 | ||||
Implied Value Range | 76.86 | 80.05 | 83.25 | ||||
FX Rate: USD/USD | 1.0 | 1.0 | 1.0 | Market Price | |||
Implied Value Range (Trading Cur) | 76.86 | 80.05 | 83.25 | 87.82 | |||
Upside / (Downside) | -12.5% | -8.8% | -5.2% |
Equity Waterfall | |||||||
Benchmark Companies | |||||||
(in millions) | RGP | HSII | KFY | BBSI | KFRC | NSP | |
Enterprise Value | 126 | 379 | 3,047 | 949 | 907 | 2,669 | |
(+) Cash & Short Term Investments | 78 | 564 | 805 | 122 | 0 | 1,055 | |
(+) Investments & Other | 0 | 0 | 41 | 0 | 0 | 0 | |
(-) Debt | (28) | (101) | (568) | (21) | (48) | (454) | |
(-) Other Liabilities | 0 | 0 | (5) | 0 | 0 | 0 | |
(-) Preferred Stock | 0 | 0 | 0 | 0 | 0 | 0 | |
(-) Other | 0 | 0 | 0 | 0 | 0 | 0 | |
Value of Common Equity | 176 | 842 | 3,320 | 1,049 | 860 | 3,270 | |
(/) Shares Outstanding | 33.1 | 20.4 | 51.6 | 25.8 | 18.2 | 37.2 | |
Implied Stock Price | 5.32 | 41.25 | 64.29 | 40.62 | 47.24 | 87.82 | |
FX Conversion Rate to Trading Currency | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | 1.00 | |
Implied Stock Price (Trading Cur) | 5.32 | 41.25 | 64.29 | 40.62 | 47.24 | 87.82 | |
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 |