Discounted Cash Flow (DCF) Analysis Levered

Adtalem Global Education Inc. (ATGE)

$38.84

+0.58 (+1.52%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.65 | 38.84 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,809.801,231.211,239.691,0521,112.38999.25897.62806.33724.32650.65
Revenue (%)
Operating Cash Flow 227.96239.19204.86107.69192.20152.01136.55122.66110.1998.98
Operating Cash Flow (%)
Capital Expenditure -48.99-66.53-64.75-44.14-48.66-43.78-39.32-35.32-31.73-28.50
Capital Expenditure (%)
Free Cash Flow 178.97172.66140.1163.55143.53108.2497.2387.3478.4670.48

Weighted Average Cost Of Capital

Share price $ 38.84
Beta 0.993
Diluted Shares Outstanding 51.65
Cost of Debt
Tax Rate 39.37
After-tax Cost of Debt 1.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.453
Total Debt 1,293.89
Total Equity 2,005.89
Total Capital 3,299.79
Debt Weighting 39.21
Equity Weighting 60.79
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,809.801,231.211,239.691,0521,112.38999.25897.62806.33724.32650.65
Operating Cash Flow 227.96239.19204.86107.69192.20152.01136.55122.66110.1998.98
Capital Expenditure -48.99-66.53-64.75-44.14-48.66-43.78-39.32-35.32-31.73-28.50
Free Cash Flow 178.97172.66140.1163.55143.53108.2497.2387.3478.4670.48
WACC
PV LFCF 79.4467.7857.8249.3342.09
SUM PV LFCF 383.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.29
Free cash flow (t + 1) 71.89
Terminal Value 2,185.02
Present Value of Terminal Value 1,688.57

Intrinsic Value

Enterprise Value 2,072.20
Net Debt 799.28
Equity Value 1,272.92
Shares Outstanding 51.65
Equity Value Per Share 24.65