Discounted Cash Flow (DCF) Analysis Levered
Chegg, Inc. (CHGG)
$17.61
+0.18 (+1.03%)
All numbers are in Millions, Currency in USD
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 | 321.08 | 410.93 | 644.34 | 776.27 | 766.90 | 966.39 | 1,217.77 | 1,534.54 | 1,933.72 | 2,436.73 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 75.11 | 113.40 | 236.44 | 273.22 | 0.26 | 237.57 | 299.37 | 377.24 | 475.37 | 599.03 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -31.22 | -42.33 | -139.88 | -105.11 | -0.10 | -106.86 | -134.66 | -169.68 | -213.82 | -269.44 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 43.89 | 71.08 | 96.56 | 168.11 | 0.15 | 130.71 | 164.71 | 207.56 | 261.55 | 329.58 |
Weighted Average Cost Of Capital
Share price | $ 17.61 |
---|---|
Beta | 1.110 |
Diluted Shares Outstanding | 146.70 |
Cost of Debt | |
Tax Rate | -156.52 |
After-tax Cost of Debt | 0.50% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.880 |
Total Debt | 1,201.97 |
Total Equity | 2,583.37 |
Total Capital | 3,785.34 |
Debt Weighting | 31.75 |
Equity Weighting | 68.25 |
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 | 321.08 | 410.93 | 644.34 | 776.27 | 766.90 | 966.39 | 1,217.77 | 1,534.54 | 1,933.72 | 2,436.73 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 75.11 | 113.40 | 236.44 | 273.22 | 0.26 | 237.57 | 299.37 | 377.24 | 475.37 | 599.03 |
Capital Expenditure | -31.22 | -42.33 | -139.88 | -105.11 | -0.10 | -106.86 | -134.66 | -169.68 | -213.82 | -269.44 |
Free Cash Flow | 43.89 | 71.08 | 96.56 | 168.11 | 0.15 | 130.71 | 164.71 | 207.56 | 261.55 | 329.58 |
WACC | ||||||||||
PV LFCF | 123.06 | 145.99 | 173.19 | 205.46 | 243.74 | |||||
SUM PV LFCF | 891.43 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.22 |
Free cash flow (t + 1) | 336.17 |
Terminal Value | 7,966.23 |
Present Value of Terminal Value | 5,891.44 |
Intrinsic Value
Enterprise Value | 6,782.87 |
---|---|
Net Debt | 728.29 |
Equity Value | 6,054.58 |
Shares Outstanding | 146.70 |
Equity Value Per Share | 41.27 |