Discounted Cash Flow (DCF) Analysis Levered

Houghton Mifflin Harcourt Company (HMHC)

$21.03

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 9.96 | 21.03 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,407.511,322.421,390.671,031.291,050.80985.56924.37866.98813.15762.67
Revenue (%)
Operating Cash Flow 135.13114.91254.98115.25267.67144.43135.46127.05119.16111.77
Operating Cash Flow (%)
Capital Expenditure -60.29-53.74-37.56-50.94-39.09-38.85-36.44-34.17-32.05-30.06
Capital Expenditure (%)
Free Cash Flow 74.8461.17217.4164.31228.58105.5899.0392.8887.1181.70

Weighted Average Cost Of Capital

Share price $ 21.03
Beta 1.136
Diluted Shares Outstanding 131.65
Cost of Debt
Tax Rate -4,400.17
After-tax Cost of Debt 7.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.162
Total Debt 452.54
Total Equity 2,768.65
Total Capital 3,221.19
Debt Weighting 14.05
Equity Weighting 85.95
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,407.511,322.421,390.671,031.291,050.80985.56924.37866.98813.15762.67
Operating Cash Flow 135.13114.91254.98115.25267.67144.43135.46127.05119.16111.77
Capital Expenditure -60.29-53.74-37.56-50.94-39.09-38.85-36.44-34.17-32.05-30.06
Free Cash Flow 74.8461.17217.4164.31228.58105.5899.0392.8887.1181.70
WACC
PV LFCF 66.1757.4149.8143.2237.50
SUM PV LFCF 375.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.10
Free cash flow (t + 1) 83.34
Terminal Value 1,366.20
Present Value of Terminal Value 925.52

Intrinsic Value

Enterprise Value 1,300.60
Net Debt -10.59
Equity Value 1,311.19
Shares Outstanding 131.65
Equity Value Per Share 9.96