RGP
Resources Connection, Inc. (RGP)
Last Price$6.9(2.7%)
Market Cap$232.7M
DCF value
$44.5
Undervalued (DCF value)
547.5%
Discount Rate
6.7%
Long-Term Growth Rate
2.0%
Stock quality
4/10
Good

RGP DCF Model

Free Cash Flow to Firm Model
NOPAT Model
Free Cash Flow to Equity Model
Net Income Model
Millions
Billions
May'20 ActualMay'21 ActualMay'22 ActualMay'23 ActualDec'23 ActualDec'24 EstimateDec'25 EstimateDec'26 EstimateDec'27 EstimateDec'28 EstimateDec'29 EstimateDec'30 EstimateDec'31 EstimateDec'32 EstimateDec'33 EstimateDec'34 Terminal
% growth
703.4
(3.5%)
629.5
(10.5%)
805.0
27.9%
775.6
(3.6%)
632.8
(18.4%)
563.3
(11.0%)
632.5
12.3%
643.0
1.7%
653.9
1.7%
665.4
1.7%
677.3
1.8%
689.6
1.8%
702.6
1.9%
716.0
1.9%
730.0
2.0%
744.6
2.0%
36.7
5.2%
23.0
3.6%
83.4
10.4%
72.8
9.4%
28.8
4.5%
39.3
7.0%
44.1
7.0%
44.8
7.0%
45.6
7.0%
46.4
7.0%
47.2
7.0%
48.1
7.0%
49.0
7.0%
49.9
7.0%
50.9
7.0%
51.9
7.0%
NOPAT
% effective tax rate
29.4
4.2%
25.5
4.1%
67.6
8.4%
54.5
7.0%
20.3
3.2%
27.7
4.9%
31.1
4.9%
31.6
4.9%
32.1
4.9%
32.7
4.9%
33.3
4.9%
33.9
4.9%
34.5
4.9%
35.2
4.9%
35.9
4.9%
36.6
4.9%
% of revenue
10.8
1.5%
9.1
1.4%
8.5
1.1%
8.6
1.1%
8.4
1.3%
6.6
1.2%
7.4
1.2%
7.5
1.2%
7.6
1.2%
7.7
1.2%
7.9
1.2%
8.0
1.2%
8.2
1.2%
8.3
1.2%
8.5
1.2%
8.7
1.2%
% of revenue
(2.3)
(0.3%)
(3.8)
(0.6%)
(3.0)
(0.4%)
(2.0)
(0.3%)
(1.1)
(0.2%)
(1.5)
(0.3%)
(1.7)
(0.3%)
(1.7)
(0.3%)
(1.8)
(0.3%)
(1.8)
(0.3%)
(1.8)
(0.3%)
(1.9)
(0.3%)
(1.9)
(0.3%)
(1.9)
(0.3%)
(2.0)
(0.3%)
(2.0)
(0.3%)
(0.3)
(0.0%)
(19.2)
(3.1%)
(24.7)
(3.1%)
143.6
18.5%
(10.4)
(1.6%)
25.9
4.6%
29.1
4.6%
29.6
4.6%
30.1
4.6%
30.6
4.6%
31.2
4.6%
31.7
4.6%
32.3
4.6%
33.0
4.6%
33.6
4.6%
34.3
4.6%
Free Cash Flow to Firm (FCFF)
% of revenue
37.6
5.3%
11.6
1.8%
48.4
6.0%
204.6
26.4%
17.2
2.7%
58.6
10.4%
65.9
10.4%
66.9
10.4%
68.1
10.4%
69.3
10.4%
70.5
10.4%
71.8
10.4%
73.1
10.4%
74.5
10.4%
76.0
10.4%
77.5
10.4%
% of FCFF used in calculation
100.0%
80.8%
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
Discount factor
0.97
0.91
0.85
0.80
0.75
0.70
0.66
0.61
0.58
Discounted FCFF (DFCFF)
51.5
60.7
57.9
55.2
52.7
50.3
48.0
45.8
43.8

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RGP DCF Value

DCF Value Calculation

as of Mar 11, 2025
Sum of DFCFF
% share of EV
465.9M
32.9%
Terminal Value (TV)
1,649.2M
Discounted TV
% share of EV
950.3M
67.1%
Total Debt
18.1M
1,507.0M
Shares outstanding
33.8M
FX rate
1.0
547.5% undervalued

Equity Value Bridge

RGP DCF Financials

Revenue
$632.8M -> $730.0M 1.4% CAGR
Operating Income
$28.8M -> $50.9M 5.9% CAGR
FCFF
$17.2M -> $76.0M 16.0% CAGR

RGP DCF sensitivity

DCF value
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
6.0%
$45.0
$48.0
$50.0
$50.0
$50.0
6.5%
$41.0
$43.0
$46.0
$49.0
$49.0
6.7%
$40.0
$42.0
$45.0
$48.0
$49.0
7.5%
$35.0
$37.0
$39.0
$41.0
$44.0
8.0%
$33.0
$34.0
$36.0
$37.0
$40.0
DCF value, undervalued / overvalued
Long-term Terminal growth rate
1.0%
1.5%
2.0%
2.5%
3.0%
WACC
6.0%
554.0%
598.0%
627.0%
627.0%
627.0%
6.5%
496.0%
525.0%
569.0%
612.0%
612.0%
6.7%
481.0%
510.0%
554.0%
598.0%
612.0%
7.5%
409.0%
438.0%
467.0%
496.0%
540.0%
8.0%
380.0%
394.0%
423.0%
438.0%
481.0%

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FAQ

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

As of Mar 11, 2025, Resources Connection, Inc.'s Discounted Cash Flow (DCF) valuation estimates its share price at $44.5. This suggests it may be undervalued by 547.5% compared to its current price of around $6.9, using a WACC of 6.7% and growth rates of 2.0%.

What is Resources Connection, Inc. WACC?

As of Mar 11, 2025, Resources Connection, Inc.'s Weighted Average Cost of Capital (WACC) is approximately 6.7%.

What is Resources Connection, Inc. Enterprise Value?

As of Mar 11, 2025, Resources Connection, Inc.'s Enterprise Value (EV) is approximately $1,416.2M. 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.