CCC Intelligent Solutions Holdings Inc. (CCCS) DCF Valuation & Fundamental Primer
CCC Intelligent Solutions Holdings Inc. (CCCS) currently trades at $8.75 with an enterprise value of $4.40B. Our proprietary institutional model rates CCC Intelligent Solutions Holdings Inc. at 67/100 (Grade: B+ · Quality Software Operator). The current market price prices in an implied 5-year revenue CAGR of 18.7% vs. historical growth of 10.5% (Aggressive Growth Expectations Priced In).
Institutional fundamental teardown of CCC Intelligent Solutions Holdings Inc. (CCCS) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
CCC Intelligent Solutions Holdings Inc. (CCCS) 3-Scenario DCF Valuation Range
Stress-test CCCS's 5-year growth, target FCF margin, WACC, terminal methodology, and SBC/dilution friction in real time.
Split between 5-Year Explicit Cash Flows and Discounted Terminal Value
2D Institutional Valuation Sensitivity Heatmap
Implied share price & upside/downside spread across 25 valuation states (Current Price: $8.75).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $6.89 -21% | $7.36 -16% | $7.90 -10% | $8.55 -2% | $9.32 +7% |
| 9.3% | $6.12 -30% | $6.49 -26% | $6.92 -21% | $7.41 -15% | $7.98 -9% |
| 10.0% | $5.49 -37% | $5.79 -34% | $6.13 -30% | $6.51 -26% | $6.95 -21% |
| 10.8% | $4.97 -43% | $5.21 -40% | $5.48 -37% | $5.79 -34% | $6.14 -30% |
| 11.5% | $4.52 -48% | $4.72 -46% | $4.95 -43% | $5.20 -41% | $5.48 -37% |
Institutional Software Quality Scorecard (67/100 · Grade B+)
Solid software model with clear operating leverage, partially offset by standard SBC or moderate burn.
Elite deferred revenue float; FCF exceeds operating income by >20%
Elevated equity dilution; SBC consumes substantial operating cash flow
High-quality software margins with healthy balanced growth and profitability
Moderate leverage or cash burn; monitor liquidity runway
Core Investment Strengths & Moats
- High-grade cash conversion: FCF is 288% of EBIT driven by upfront annual collections
- Healthy unit economics: 75.6% gross margin
Key Operational & Dilution Risks
- Substantial SBC dilution drag: SBC is 18.1% of revenue ($171.0M)
Reverse-DCF Solver: What Growth is Priced Into CCCS?
The current share price demands 18.7% 5-year CAGR (34.1% net of SBC & dilution)—a +8.2% acceleration over historical run-rate (10.5%). Any growth slowdown risks valuation multiple contraction.
Headline Reverse-DCF ignores Stock-Based Compensation (18.1% of revenue) and annual share dilution (2.2%/yr). Accounting for both requires 34.1% 5-year revenue CAGR to justify $8.75/sh on a true per-share economic cash flow basis.
CCC Intelligent Solutions Holdings Inc. (CCCS) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $944.8M | $944.8M | $1.04B | $1.15B | $1.28B | $1.41B | $1.56B |
| Gross Profit | $713.8M | $713.8M | $789.0M | $872.0M | $963.9M | $1.07B | $1.18B |
| Operating Income (EBIT) | $80.1M | $80.1M | $88.6M | $97.9M | $108.2M | $119.6M | $132.2M |
| Stock-Based Compensation (SBC) | $171.0M | $171.0M | $189.0M | $208.9M | $230.9M | $255.2M | $282.1M |
| Unlevered Free Cash Flow (FCF) | $230.9M | $230.9M | $255.2M | $282.1M | $311.8M | $344.6M | $380.9M |
| SBC-Adjusted True Cash Flow | $59.8M | $59.9M | $66.2M | $73.2M | $80.9M | $89.4M | $98.8M |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -16.7 + 0.57 × (Rule of 40) · R² = 69%Stocks below the gold regression line trade at a discount relative to their Rule of 40 compounding efficiency.
| Company | Ticker | Market Cap | TTM Revenue | Gross Margin | FCF Margin | Rule of 40 | SBC % Rev | EV / Rev |
|---|---|---|---|---|---|---|---|---|
| CCC Intelligent Solutions Holdings Inc. | CCCS | $5.63B | $944.8M | 75.5% | 24.4% | 35.0% | 18.1% | 6.4× |
| ServiceNow | NOW | $152.61B | $10.98B | 79.2% | 31.1% | 54.2% | 15.9% | 13.9× |
| Workday, Inc. | WDAY | $50.35B | $8.00B | 75.0% | 27.4% | 43.9% | 19.0% | 6.4× |
| Salesforce | CRM | $217.10B | $37.90B | 77.2% | 32.8% | 42.8% | 8.4% | 5.8× |
| Datadog | DDOG | $46.05B | $2.68B | 80.8% | 31.1% | 57.7% | 21.3% | 17.4× |
| Snowflake Inc. | SNOW | $71.79B | $3.63B | 66.5% | 25.2% | 57.7% | 40.8% | 20.0× |
| Hubspot | HUBS | $19.89B | $2.63B | 85.0% | 21.3% | 52.7% | 19.2% | 7.7× |
| Peer Cohort Median Benchmark (N=6) | 78.2% | 29.2% | 53.5% | 19.1% | 10.8× | |||
EV / Revenue Multiple Compression Stress Test
| Multiple Scenario | EV / Revenue | Implied Enterprise Value | Implied Equity Value | Implied Share Price | Delta vs Current |
|---|---|---|---|---|---|
| Current Multiple | 6.4× | $6.08B | $5.63B | $8.75 | 0.0% |
| -20% Multiple Compression | 5.1× | $4.86B | $4.41B | $6.86 | -20.0% |
| -35% Multiple Compression | 4.2× | $3.95B | $3.50B | $5.44 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $4.72B | $4.27B | $6.64 | -22.3% |
Frequently Asked Questions: CCC Intelligent Solutions Holdings Inc. (CCCS) Valuation
What is CCC Intelligent Solutions Holdings Inc. (CCCS)'s intrinsic DCF valuation and implied share price?
Based on audited SEC 10-K/10-Q filings and a 5-year 3-statement discounted cash flow (DCF) model, CCC Intelligent Solutions Holdings Inc. (CCCS) has a Base Case implied value of $6.15 per share (with a Bear Case of $2.86 and a Bull Case of $10.14), compared to its current price of $8.75. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is CCC Intelligent Solutions Holdings Inc. (CCCS)'s Rule of 40 score and Free Cash Flow margin?
CCC Intelligent Solutions Holdings Inc. achieves a Rule of 40 score of 35.0%, combining a 10.5% revenue growth run-rate with a 24.4% TTM free cash flow margin on $944.8M in trailing twelve-month revenue. In the Software & Cloud Services peer cohort, the median Rule of 40 benchmark is 53.5%.
What revenue growth rate is priced into CCCS stock according to Reverse-DCF analysis?
At $8.75 per share (Enterprise Value of $6.08B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 18.7%, compared to CCC Intelligent Solutions Holdings Inc.'s historical CAGR of 10.5%. Overall market expectations are rated as "Aggressive Growth Expectations Priced In".
How does CCC Intelligent Solutions Holdings Inc. compare to Software & Cloud Services software peers?
CCC Intelligent Solutions Holdings Inc. (CCCS) earns an institutional Software Quality Score of 67/100 (Grade B+ — Quality Software Operator). Across its Software & Cloud Services peer group (NOW, WDAY, CRM, DDOG, SNOW), the cohort trades at a median EV/TTM Revenue multiple of 10.8× and a median gross margin of 78.2%.
How does Stock-Based Compensation (SBC) impact CCC Intelligent Solutions Holdings Inc. (CCCS)'s valuation?
CCC Intelligent Solutions Holdings Inc. recorded $171.0M in TTM stock-based compensation (18.1% of revenue). When treating SBC as a cash-equivalent compensation expense, CCC Intelligent Solutions Holdings Inc.'s SBC-adjusted free cash flow yield is 1.1%, scoring 10/25 on our Shareholder Dilution Friction pillar.