MMS
Maximus, Inc. (MMS)
Last Price$71.24.7%
Market Cap$4,251.8M
DCF value
$95.4
Undervalued (DCF value)
34.0%
Discount Rate
7.9%
Long-Term Growth Rate
2.0%
Stock quality
6/10
Good

MMS DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
Sep'20 ActualSep'21 ActualSep'22 ActualSep'23 ActualSep'24 ActualSep'25 EstimateSep'26 EstimateSep'27 EstimateSep'28 EstimateSep'29 EstimateSep'30 EstimateSep'31 EstimateSep'32 EstimateSep'33 EstimateSep'34 EstimateSep'35 Terminal
% growth
3,461.5
19.9%
4,254.5
22.9%
4,631.0
8.9%
4,904.7
5.9%
5,306.2
8.2%
5,262.6
(0.8%)
5,411.4
2.8%
5,559.4
2.7%
5,706.3
2.6%
5,851.9
2.6%
5,995.8
2.5%
6,137.7
2.4%
6,277.4
2.3%
6,414.5
2.2%
6,548.7
2.1%
6,679.6
2.0%
288.3
8.3%
408.5
9.6%
325.9
7.0%
294.8
6.0%
488.5
9.2%
422.7
8.0%
434.7
8.0%
446.5
8.0%
458.3
8.0%
470.0
8.0%
481.6
8.0%
493.0
8.0%
504.2
8.0%
515.2
8.0%
526.0
8.0%
536.5
8.0%
NOPAT
% effective tax rate
215.4
6.2%
310.1
7.3%
239.7
5.2%
226.8
4.6%
368.8
7.0%
319.1
6.1%
328.2
6.1%
337.1
6.1%
346.1
6.1%
354.9
6.1%
363.6
6.1%
372.2
6.1%
380.7
6.1%
389.0
6.1%
397.1
6.1%
405.1
6.1%
% of revenue
107.0
3.1%
104.3
2.5%
141.7
3.1%
149.3
3.0%
0.0
0.0%
107.1
2.0%
110.1
2.0%
113.1
2.0%
116.1
2.0%
119.1
2.0%
122.0
2.0%
124.9
2.0%
127.7
2.0%
130.5
2.0%
133.2
2.0%
135.9
2.0%
% of revenue
(40.7)
(1.2%)
(36.6)
(0.9%)
(56.1)
(1.2%)
(90.7)
(1.8%)
(114.2)
(2.2%)
(91.5)
(1.7%)
(94.0)
(1.7%)
(96.6)
(1.7%)
(99.2)
(1.7%)
(101.7)
(1.7%)
(104.2)
(1.7%)
(106.7)
(1.7%)
(109.1)
(1.7%)
(111.5)
(1.7%)
(113.8)
(1.7%)
(116.1)
(1.7%)
(72.9)
(2.1%)
104.1
2.4%
(79.4)
(1.7%)
(31.6)
(0.6%)
78.9
1.5%
(15.3)
(0.3%)
(15.7)
(0.3%)
(16.1)
(0.3%)
(16.6)
(0.3%)
(17.0)
(0.3%)
(17.4)
(0.3%)
(17.8)
(0.3%)
(18.2)
(0.3%)
(18.6)
(0.3%)
(19.0)
(0.3%)
(19.4)
(0.3%)
Free Cash Flow to Firm (FCFF)
% of revenue
208.7
6.0%
481.9
11.3%
245.8
5.3%
253.9
5.2%
333.6
6.3%
319.5
6.1%
328.5
6.1%
337.5
6.1%
346.4
6.1%
355.3
6.1%
364.0
6.1%
372.6
6.1%
381.1
6.1%
389.4
6.1%
397.6
6.1%
405.5
6.1%
% of FCFF used in calculation
56.7%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
100.0%
Discount period
0.50
1.50
2.50
3.50
4.50
5.50
6.50
7.50
8.50
9.50
Discount factor
0.96
0.89
0.83
0.77
0.71
0.66
0.61
0.56
0.52
0.48
Discounted FCFF (DFCFF)
174.4
293.0
278.9
265.2
252.0
239.2
226.9
215.0
203.5
192.5

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MMS DCF Value

DCF Value Calculation

as of Mar 07, 2025
Sum of DFCFF
% share of EV
2,340.6M
41.4%
Terminal Value (TV)
6,836.5M
Discounted TV
% share of EV
3,310.7M
58.6%
Total Debt
137.4M
5,697.0M
Shares outstanding
59.7M
FX rate
1.0
34% undervalued

Equity Value Bridge

MMS DCF Financials

Revenue
$5,306.2M -> $6,548.7M 2.1% CAGR
Operating Income
$488.5M -> $526.0M 0.7% CAGR
FCFF
$333.6M -> $397.6M 1.8% CAGR

MMS DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
$101.0
$107.0
$113.0
$121.0
$131.0
7.5%
$93.0
$98.0
$103.0
$109.0
$117.0
7.9%
$87.0
$91.0
$95.0
$100.0
$107.0
8.5%
$81.0
$84.0
$87.0
$91.0
$96.0
9.0%
$76.0
$78.0
$81.0
$84.0
$88.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
7.0%
42.0%
50.0%
59.0%
70.0%
84.0%
7.5%
31.0%
38.0%
45.0%
53.0%
64.0%
7.9%
22.0%
28.0%
33.0%
40.0%
50.0%
8.5%
14.0%
18.0%
22.0%
28.0%
35.0%
9.0%
7.0%
10.0%
14.0%
18.0%
24.0%

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FAQ

What is Maximus, Inc. DCF (discounted cash flow) valuation?

As of Mar 07, 2025, Maximus, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $95.4. This suggests it may be undervalued by 34.0% compared to its current price of around $71.2, using a WACC of 7.9% and growth rates of 2.0%.

What is Maximus, Inc. WACC?

As of Mar 07, 2025, Maximus, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 7.9%.

What is Maximus, Inc. Enterprise Value?

As of Mar 07, 2025, Maximus, Inc.'s Enterprise Value (EV) is approximately $5,651.3M. This value reflects the company's total market capitalization plus debt, minus cash and cash equivalents, providing a comprehensive measure of its overall value in the market.