Discounted Cash Flow (DCF) Analysis Levered

Bright Scholar Education Holdings L... (BEDU)

$1.62

-0.11 (-6.36%)

All numbers are in Millions, Currency in USD

Stock DCF: 45.06 | 1.62 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	275.02	410.08	538.64	224.28	274.39	304.87	338.74	376.37	418.18	464.63
Revenue (%)
Operating Cash Flow	88.67	138.40	78.60	111.81	7.28	81.15	90.16	100.18	111.31	123.67
Operating Cash Flow (%)
Capital Expenditure	-18.81	-24.83	-23.96	-25.39	-19.66	-21.85	-24.27	-26.97	-29.97	-33.29
Capital Expenditure (%)
Free Cash Flow	69.87	113.57	54.63	86.42	-12.38	59.30	65.89	73.21	81.34	90.38

Weighted Average Cost Of Capital

Share price	$ 1.62
Beta	0.534
Diluted Shares Outstanding	29.81
Cost of Debt
Tax Rate	-171.88
After-tax Cost of Debt	7.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.210
Total Debt	271.19
Total Equity	48.28
Total Capital	319.48
Debt Weighting	84.89
Equity Weighting	15.11
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	275.02	410.08	538.64	224.28	274.39	304.87	338.74	376.37	418.18	464.63
Operating Cash Flow	88.67	138.40	78.60	111.81	7.28	81.15	90.16	100.18	111.31	123.67
Capital Expenditure	-18.81	-24.83	-23.96	-25.39	-19.66	-21.85	-24.27	-26.97	-29.97	-33.29
Free Cash Flow	69.87	113.57	54.63	86.42	-12.38	59.30	65.89	73.21	81.34	90.38
WACC
PV LFCF						55.25	57.19	59.20	61.27	63.43
SUM PV LFCF										296.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.34
Free cash flow (t + 1)	92.19
Terminal Value	1,726.36
Present Value of Terminal Value	1,211.50

Intrinsic Value

Enterprise Value	1,507.83
Net Debt	164.83
Equity Value	1,343
Shares Outstanding	29.81
Equity Value Per Share	45.06