CBIZ Inc. provides professional business services, products, and solutions in the United States and Canada. It offers its services through three practice groups: Financial Services, Employee Services, and National Practices. The company was founded in 1987 and is based in Cleveland, Ohio.
CBZ Price Forecast Based on DCF Valuation
DCF Fair Value Target:
Below please find a table outlining a discounted cash flow forecast for CBZ, in which we model out valuation assuming a variety of terminal growth rates. To summarize, we found that CBIZ Inc ranked in the 87th percentile in terms of potential gain offered. More precisely, our analysis suggests the stock is undervalued by approximately 977% on a DCF basis. The most interesting components of our discounted cash flow analysis for CBIZ Inc ended up being:
In the past 5.5 years, CBIZ Inc has a compound free cash flow growth rate of 0.7%; that's better than 92.6% of cash flow producing equities in the Industrials sector, where it is classified.
CBIZ Inc's weighted average cost of capital (WACC) is 7%; for context, that number is higher than merely 12.66% of tickers in our DCF set.
CBZ's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than merely 12.66% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
ASC, SRT, ACY, MLI, and SFL can be thought of as valuation peers to CBZ, in the sense that they are in the Industrials sector and have a similar price forecast based on DCF valuation.
The CBIZ Small Business Employment Index ("SBEI") reported a stark increase in small business hiring in June, with a seasonally adjusted reading of 1.82%. This marks a turnaround in small business hiring over April and May, which recorded the top two greatest declines in the 11-year CBIZ SBEI history. The CBIZ SBEI tracks payroll and hiring trends for over 3,400 companies that have 300 or fewer employees, providing broad insight into small business trends.
The CBIZ Small Business Employment Index ("SBEI") reported a staggering seasonally adjusted 9.43% decrease in small business hiring in April. This underscores the devastating impact the coronavirus pandemic has had on small businesses nationwide and represents the sharpest single-month decline since the index’s inception following the 2008-2009 recession. The CBIZ SBEI tracks payroll and hiring trends for over 3,300 companies that have 300 or fewer employees, providing broad insight into small business trends.