Discounted Cash Flow (DCF) Analysis Levered

Chegg, Inc. (CHGG)

$17.61

+0.18 (+1.03%)
All numbers are in Millions, Currency in USD
Stock DCF: 41.27 | 17.61 | 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 321.08410.93644.34776.27766.90966.391,217.771,534.541,933.722,436.73
Revenue (%)
Operating Cash Flow 75.11113.40236.44273.220.26237.57299.37377.24475.37599.03
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 43.8971.0896.56168.110.15130.71164.71207.56261.55329.58

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 321.08410.93644.34776.27766.90966.391,217.771,534.541,933.722,436.73
Operating Cash Flow 75.11113.40236.44273.220.26237.57299.37377.24475.37599.03
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 43.8971.0896.56168.110.15130.71164.71207.56261.55329.58
WACC
PV LFCF 123.06145.99173.19205.46243.74
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