What is Consensus Cloud Solutions, Inc. worth?
With the base-case assumptions below, a discounted cash flow model on Consensus Cloud Solutions, Inc.'s reported free cash flow gives $57.42 per share.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | -3.5% | 10.0% | $26.94 | - |
| Base | 1.5% | 9.0% | $57.42 | - |
| Bull | 6.5% | 8.0% | $116.78 | - |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $78.70 | $85.11 | $92.93 | $102.71 | $115.29 |
| 8.0% | $62.89 | $67.05 | $71.95 | $77.84 | $85.04 |
| 9.0% | $51.31 | $54.15 | $57.42 | $61.24 | $65.76 |
| 10.0% | $42.45 | $44.47 | $46.76 | $49.37 | $52.39 |
| 11.0% | $35.46 | $36.94 | $38.60 | $40.46 | $42.57 |
Where the presets come from
Base: years 1 to 5 grow at Consensus Cloud Solutions, Inc.'s revenue growth rate over the last 4 fiscal years (1.4% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions