Discounted Cash Flow (DCF) Analysis Levered

Conduent Incorporated (CNDT)

$3.25

-0.06 (-1.81%)

All numbers are in Millions, Currency in USD

Stock DCF: -4.93 | 3.25 | overvalue

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	5,393	4,467	4,163	4,140	3,858	3,555.73	3,277.14	3,020.37	2,783.73	2,565.62
Revenue (%)
Operating Cash Flow	283	132	161	243	144	154.12	142.04	130.92	120.66	111.20
Operating Cash Flow (%)
Capital Expenditure	-224	-215	-139	-147	-153	-140.96	-129.92	-119.74	-110.36	-101.71
Capital Expenditure (%)
Free Cash Flow	59	-83	22	96	-9	13.16	12.13	11.18	10.30	9.49

Weighted Average Cost Of Capital

Share price	$ 3.25
Beta	1.777
Diluted Shares Outstanding	155.56
Cost of Debt
Tax Rate	-43.31
After-tax Cost of Debt	5.49%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.134
Total Debt	1,529
Total Equity	505.56
Total Capital	2,034.56
Debt Weighting	75.15
Equity Weighting	24.85
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	5,393	4,467	4,163	4,140	3,858	3,555.73	3,277.14	3,020.37	2,783.73	2,565.62
Operating Cash Flow	283	132	161	243	144	154.12	142.04	130.92	120.66	111.20
Capital Expenditure	-224	-215	-139	-147	-153	-140.96	-129.92	-119.74	-110.36	-101.71
Free Cash Flow	59	-83	22	96	-9	13.16	12.13	11.18	10.30	9.49
WACC
PV LFCF						9.32	8.02	6.90	5.93	5.10
SUM PV LFCF										46.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.14
Free cash flow (t + 1)	9.68
Terminal Value	188.37
Present Value of Terminal Value	133.43

Intrinsic Value

Enterprise Value	179.90
Net Debt	947
Equity Value	-767.10
Shares Outstanding	155.56
Equity Value Per Share	-4.93