Discounted Cash Flow (DCF) Analysis Levered

Mercury Systems, Inc. (MRCY)

$36.69

+0.70 (+1.95%)
All numbers are in Millions, Currency in USD
Stock DCF: 4.75 | 36.69 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 654.74796.61924988.20973.881,078.961,195.371,324.351,467.241,625.55
Revenue (%)
Operating Cash Flow 97.52115.1897.25-18.87-21.2577.2285.5694.79105.01116.34
Operating Cash Flow (%)
Capital Expenditure -26.69-43.29-45.60-27.66-38.80-45.81-50.75-56.23-62.29-69.02
Capital Expenditure (%)
Free Cash Flow 70.8371.8951.65-46.52-60.0531.4134.8038.5642.7247.33

Weighted Average Cost Of Capital

Share price $ 36.69
Beta 0.884
Diluted Shares Outstanding 56.55
Cost of Debt
Tax Rate 41.63
After-tax Cost of Debt 2.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.802
Total Debt 578.30
Total Equity 2,074.97
Total Capital 2,653.26
Debt Weighting 21.80
Equity Weighting 78.20
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 654.74796.61924988.20973.881,078.961,195.371,324.351,467.241,625.55
Operating Cash Flow 97.52115.1897.25-18.87-21.2577.2285.5694.79105.01116.34
Capital Expenditure -26.69-43.29-45.60-27.66-38.80-45.81-50.75-56.23-62.29-69.02
Free Cash Flow 70.8371.8951.65-46.52-60.0531.4134.8038.5642.7247.33
WACC
PV LFCF 29.2430.1531.0932.0633.06
SUM PV LFCF 155.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.44
Free cash flow (t + 1) 48.27
Terminal Value 887.39
Present Value of Terminal Value 619.85

Intrinsic Value

Enterprise Value 775.44
Net Debt 506.73
Equity Value 268.71
Shares Outstanding 56.55
Equity Value Per Share 4.75