WageWorks: Outstanding Growth Play Misunderstood By Investors, Offering 21% Return

WageWorks Inc.'s (NYSE:WAGE) consumer-directed benefits "CDB" programs operate and administer a wide range of tax-advantage CDBs including Healthy Savings Accounts "HAS", Flexible Spending Accounts "FSA", Health Reimbursement Arrangements "HRA" as well as commuter benefits to its clients. These programs allow employees to save their tax money by using pretax earnings to pay for their healthcare and commuter expenses. These programs also help employers to reduce their payroll taxes. As the popularity of these programs is increasing I believe that the company will experience strong growth in its revenues which will eventually help the company to bolster its cash flows in the future. In order to compute the intrinsic value of the stock I have used the free cash