CPAY · NYQ · Technology
Corpay, Inc.
Also onShortfallConsensus DriftCrosscheck
Implied value per share
USD 502.02
Market price
USD 409.29
Implied upside
+22.7%
10-year forecast · Perpetuity growth terminal value · Mid-year discounting · Base case · Price 2026-11-02 · Accounts to 2025-12-31
Value Per Share
Same forecast, different terminal treatment. Percentages vs price.
Forecast Cashflows
Reporting currency (USD). Outflows negative.
| Line | FY26 | FY27 | FY28 | FY29 | FY30 | FY31 | FY32 | FY33 | FY34 | FY35 | CAGR |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue | USD 5.3bn | USD 5.8bn | USD 6.2bn | USD 6.7bn | USD 7.1bn | USD 7.5bn | USD 7.9bn | USD 8.2bn | USD 8.4bn | USD 8.7bn | +5.6% |
| EBIT | USD 2.3bn | USD 2.5bn | USD 2.7bn | USD 2.9bn | USD 3.1bn | USD 3.3bn | USD 3.4bn | USD 3.5bn | USD 3.7bn | USD 3.8bn | +5.6% |
| NOPAT | USD 1.8bn | USD 2.0bn | USD 2.1bn | USD 2.3bn | USD 2.4bn | USD 2.6bn | USD 2.7bn | USD 2.8bn | USD 2.9bn | USD 3.0bn | +5.6% |
| Add depreciation & amortisation | USD 477.2m | USD 518.5m | USD 559.3m | USD 599.0m | USD 637.0m | USD 672.5m | USD 704.8m | USD 733.2m | USD 757.2m | USD 776.1m | +5.6% |
| Less capital expenditure | USD -230.8m | USD -292.8m | USD -361.3m | USD -435.6m | USD -514.9m | USD -598.1m | USD -684.1m | USD -771.2m | USD -857.8m | USD -942.3m | +16.9% |
| Capex, % of revenue | 4.3% | 5.1% | 5.8% | 6.5% | 7.3% | 8.0% | 8.7% | 9.4% | 10.2% | 10.9% | - |
| Less increase in working capital | USD -108.4m | USD -62.9m | USD -62.3m | USD -60.6m | USD -57.9m | USD -54.1m | USD -49.3m | USD -43.4m | USD -36.5m | USD -28.9m | -13.7% |
| Free cashflow to firm | USD 2.0bn | USD 2.1bn | USD 2.3bn | USD 2.4bn | USD 2.5bn | USD 2.6bn | USD 2.7bn | USD 2.7bn | USD 2.8bn | USD 2.8bn | +3.9% |
| Discount factor | 0.9636 | 0.8946 | 0.8307 | 0.7712 | 0.7161 | 0.6649 | 0.6173 | 0.5731 | 0.5321 | 0.4941 | - |
| Present value | USD 1.9bn | USD 1.9bn | USD 1.9bn | USD 1.8bn | USD 1.8bn | USD 1.7bn | USD 1.6bn | USD 1.6bn | USD 1.5bn | USD 1.4bn | - |
| Present Value Of The Forecast | USD 17.1bn | ||||||||||
Discount Rate
Source shown per component. All overridable above.
| Risk-free rate | 4.89% | US 10-year Treasury (^TNX), 2026-11-02 |
| Equity risk premium | 4.23% | Damodaran, January 2026 |
| Beta | 0.948 | Reported 0.922, pulled toward 1.0 (Blume) |
| Cost of equity | 8.90% | Risk-free + beta x equity risk premium |
| Cost of debt | 5.67% | Risk-free + 78bp, the spread for a A rating at 4.8x interest cover. Book interest / average debt was lower, at 4.5%. |
| Market capitalisation | USD 26.9bn | 72.9% of capital |
| Total debt | USD 10.0bn | 27.1% of capital, book value as a proxy |
| Tax rate | 21.0% | Effective, capped at statutory |
| WACC | 7.70% | E/V x Re + D/V x Rd x (1 - t) |
Terminal Value
Perpetuity growth is intrinsic. The exit multiple defaults to the company's current EV/EBITDA, so it answers a different question - what the shares are worth if today's rating holds and EBITDA grows as forecast.
Perpetuity growth at 2.50%
60% of EV
- Forecast FCFF, final year
- USD 2.8bn
- Capex at depreciation, working capital in reinvestment
- USD 3.4bn
- Less reinvestment at g/ROIC (20.5% of NOPAT)
- USD -692.9m
- Capitalised
- USD 2.7bn
- ROIC (reported)
- 12.2%
- Terminal value, undiscounted
- USD 53.0bn
- Terminal value, discounted
- USD 26.2bn
- Enterprise value
- USD 43.3bn
- Less net debt
- USD 7.6bn
- Equity value
- USD 35.7bn
Exit at 14.7x EBITDA
66% of EV
- Terminal value, undiscounted
- USD 66.6bn
- Terminal value, discounted
- USD 32.9bn
- Enterprise value
- USD 50.0bn
- Less net debt
- USD 7.6bn
- Equity value
- USD 42.4bn
Spread between methods: 17%.
Sensitivity
Value per share (USD) by discount rate and long-run growth.
| Long-run growth | |||||
|---|---|---|---|---|---|
| Discount rate | 1.50% | 2.00% | 2.50% | 3.00% | 3.50% |
| 5.70% | 763.39 | 809.30 | 871.07 | 957.48 | 1085.32 |
| 6.70% | 595.50 | 616.13 | 642.76 | 677.82 | 725.26 |
| 7.70% | 481.81 | 490.65 | 502.02 | 516.74 | 535.99 |
| 8.70% | 399.75 | 402.58 | 406.53 | 411.90 | 419.09 |
| 9.70% | 337.75 | 337.36 | 337.46 | 338.15 | 339.58 |
Outlined: this model. Green text: above today's price of 409.29. Shading: distance from this model's own value.
Priced In
What each input would have to be to justify the current price, one at a time.
| Input | Actual | Model | Implied | Gap |
|---|---|---|---|---|
| Revenue growth, a year | 9.7% | 6.7% | 4.7% | |
| EBIT margin | 44.2% | 43.4% | 35.9% | |
| Discount rate | - | 7.7% | 8.7% |
Live formulas, not pasted numbers - edit a driver and the workbook reprices.
Yahoo Finance and RBA data. General information, not advice. Methodology.