Discounted Cash Flow (DCF) Analysis Levered
Mr. Cooper Group Inc. (COOP)
$52.88
-0.16 (-0.30%)
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 | 1,790 | 2,007 | 3,067 | 3,318 | 2,725 | 3,101.39 | 3,529.77 | 4,017.31 | 4,572.20 | 5,203.73 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 3,545 | 702 | 331 | 2,632 | 3,767 | 2,861.83 | 3,257.11 | 3,707 | 4,219.03 | 4,801.78 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -15 | -596 | -187 | -963 | -1,612 | -774.17 | -881.11 | -1,002.81 | -1,141.32 | -1,298.96 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 3,530 | 106 | 144 | 1,669 | 2,155 | 2,087.65 | 2,376.01 | 2,704.19 | 3,077.71 | 3,502.81 |
Weighted Average Cost Of Capital
| Share price | $ 52.88 |
|---|---|
| Beta | 1.578 |
| Diluted Shares Outstanding | 73.82 |
| Cost of Debt | |
| Tax Rate | 23.97 |
| After-tax Cost of Debt | 5.80% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 12.005 |
| Total Debt | 5,558 |
| Total Equity | 3,903.50 |
| Total Capital | 9,461.50 |
| Debt Weighting | 58.74 |
| Equity Weighting | 41.26 |
| 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 | 1,790 | 2,007 | 3,067 | 3,318 | 2,725 | 3,101.39 | 3,529.77 | 4,017.31 | 4,572.20 | 5,203.73 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 3,545 | 702 | 331 | 2,632 | 3,767 | 2,861.83 | 3,257.11 | 3,707 | 4,219.03 | 4,801.78 |
| Capital Expenditure | -15 | -596 | -187 | -963 | -1,612 | -774.17 | -881.11 | -1,002.81 | -1,141.32 | -1,298.96 |
| Free Cash Flow | 3,530 | 106 | 144 | 1,669 | 2,155 | 2,087.65 | 2,376.01 | 2,704.19 | 3,077.71 | 3,502.81 |
| WACC | ||||||||||
| PV LFCF | 1,926.59 | 2,023.53 | 2,125.35 | 2,232.29 | 2,344.62 | |||||
| SUM PV LFCF | 10,652.38 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 8.36 |
| Free cash flow (t + 1) | 3,572.87 |
| Terminal Value | 56,177.19 |
| Present Value of Terminal Value | 37,602.36 |
Intrinsic Value
| Enterprise Value | 48,254.74 |
|---|---|
| Net Debt | 5,031 |
| Equity Value | 43,223.74 |
| Shares Outstanding | 73.82 |
| Equity Value Per Share | 585.54 |