SS&C Technologies Holdings Inc (SSNC) DCF Valuation & Fundamental Primer
SS&C Technologies Holdings Inc (SSNC) currently trades at $88.18 with an enterprise value of $20.97B. Our proprietary institutional model rates SS&C Technologies Holdings Inc at 63/100 (Grade: B · Mixed Fundamental Profile). The current market price prices in an implied 5-year revenue CAGR of 13.2% vs. historical growth of 5.9% (Aggressive Growth Expectations Priced In).
Institutional fundamental teardown of SS&C Technologies Holdings, Inc. (SSNC) covering SEC 10-K/10-Q cash flow conversion, SBC dilution friction, and Reverse-DCF valuation hurdles.
SS&C Technologies Holdings Inc (SSNC) 3-Scenario DCF Valuation Range
Stress-test SSNC'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: $88.18).
| WACC \ Terminal | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% |
|---|---|---|---|---|---|
| 8.5% | $68.18 -23% | $73.93 -16% | $80.64 -9% | $88.58 +0% | $98.09 +11% |
| 9.3% | $58.76 -33% | $63.29 -28% | $68.50 -22% | $74.53 -15% | $81.62 -7% |
| 10.0% | $51.01 -42% | $54.65 -38% | $58.78 -33% | $63.50 -28% | $68.95 -22% |
| 10.8% | $44.52 -50% | $47.50 -46% | $50.84 -42% | $54.61 -38% | $58.90 -33% |
| 11.5% | $39.01 -56% | $41.48 -53% | $44.22 -50% | $47.29 -46% | $50.74 -42% |
Institutional Software Quality Scorecard (63/100 · Grade B)
Viable recurring software business but carries notable dilution, lower margins, or higher leverage.
Solid cash generation with minor working capital absorption
Minimal dilution friction; management compensation aligned with shareholders
Sub-par gross margins; higher cost of delivery or hardware/services mix
Moderate leverage or cash burn; monitor liquidity runway
Core Investment Strengths & Moats
- Low dilution friction: SBC is only 3.5% of revenue
Key Operational & Dilution Risks
- Lower software gross margins (48.7%), indicating higher hosting or service delivery drag
Reverse-DCF Solver: What Growth is Priced Into SSNC?
The current share price demands 13.2% 5-year CAGR (15.6% net of SBC & dilution)—a +7.2% acceleration over historical run-rate (5.9%). Any growth slowdown risks valuation multiple contraction.
Headline Reverse-DCF ignores Stock-Based Compensation (3.5% of revenue) and annual share dilution (0.4%/yr). Accounting for both requires 15.6% 5-year revenue CAGR to justify $88.18/sh on a true per-share economic cash flow basis.
SS&C Technologies Holdings Inc (SSNC) 5-Year Fundamental Forecast
| Statement Line Item | TTM Audited Base | TTM | Y1 | Y2 | Y3 | Y4 | Y5 |
|---|---|---|---|---|---|---|---|
| Revenue | $5.88B | $5.88B | $6.23B | $6.60B | $7.00B | $7.41B | $7.85B |
| Gross Profit | $2.86B | $2.86B | $3.03B | $3.21B | $3.41B | $3.61B | $3.82B |
| Operating Income (EBIT) | $1.34B | $1.34B | $1.42B | $1.51B | $1.60B | $1.69B | $1.79B |
| Stock-Based Compensation (SBC) | $203.3M | $203.5M | $215.6M | $228.5M | $242.0M | $256.5M | $271.7M |
| Unlevered Free Cash Flow (FCF) | $1.33B | $1.33B | $1.41B | $1.49B | $1.58B | $1.67B | $1.77B |
| SBC-Adjusted True Cash Flow | $1.12B | $1.12B | $1.19B | $1.26B | $1.34B | $1.42B | $1.50B |
Software & Cloud Services Peer Comparables & Rule of 40 Regression
Rule of 40 vs. EV / Revenue Multiple Regression
OLS Fit: EV/Rev = -12.0 + 0.47 × (Rule of 40) · R² = 66%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 |
|---|---|---|---|---|---|---|---|---|
| SS&C Technologies Holdings Inc | SSNC | $21.52B | $5.88B | 48.7% | 22.6% | 28.5% | 3.5% | 4.8× |
| 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 | 4.8× | $28.14B | $21.52B | $88.18 | 0.0% |
| -20% Multiple Compression | 3.8× | $22.51B | $15.89B | $65.12 | -20.0% |
| -35% Multiple Compression | 3.1× | $18.29B | $11.67B | $47.83 | -35.0% |
| Software Baseline Floor (5.0× EV/Rev) | 5.0× | $29.41B | $22.79B | $93.39 | +4.5% |
Frequently Asked Questions: SS&C Technologies Holdings Inc (SSNC) Valuation
What is SS&C Technologies Holdings Inc (SSNC)'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, SS&C Technologies Holdings Inc (SSNC) has a Base Case implied value of $58.81 per share (with a Bear Case of $21.96 and a Bull Case of $100.20), compared to its current price of $88.18. The model discounts projected free cash flows at a 10.0% WACC and a 2.5% terminal growth rate.
What is SS&C Technologies Holdings Inc (SSNC)'s Rule of 40 score and Free Cash Flow margin?
SS&C Technologies Holdings Inc achieves a Rule of 40 score of 28.5%, combining a 5.9% revenue growth run-rate with a 22.6% TTM free cash flow margin on $5.88B 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 SSNC stock according to Reverse-DCF analysis?
At $88.18 per share (Enterprise Value of $28.14B), our Reverse-DCF solver indicates the market is pricing in a 5-year implied revenue CAGR of 13.2%, compared to SS&C Technologies Holdings Inc's historical CAGR of 5.9%. Overall market expectations are rated as "Aggressive Growth Expectations Priced In".
How does SS&C Technologies Holdings Inc compare to Software & Cloud Services software peers?
SS&C Technologies Holdings Inc (SSNC) earns an institutional Software Quality Score of 63/100 (Grade B — Mixed Fundamental Profile). 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 SS&C Technologies Holdings Inc (SSNC)'s valuation?
SS&C Technologies Holdings Inc recorded $203.3M in TTM stock-based compensation (3.5% of revenue). When treating SBC as a cash-equivalent compensation expense, SS&C Technologies Holdings Inc's SBC-adjusted free cash flow yield is 5.2%, scoring 25/25 on our Shareholder Dilution Friction pillar.