Discounted Cash Flow (DCF) Analysis Levered

Navient Corporation (NAVI)

$18.8

-0.12 (-0.63%)

All numbers are in Millions, Currency in USD

Stock DCF: -2,680.65 | 18.8 | 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	2,211	1,923	1,996	1,688	2,211	2,245.95	2,281.45	2,317.52	2,354.15	2,391.36
Revenue (%)
Operating Cash Flow	1,157	1,140	1,019	987	702	1,135.94	1,153.89	1,172.13	1,190.66	1,209.48
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	1,135.94	1,153.89	1,172.13	1,190.66	1,209.48

Weighted Average Cost Of Capital

Share price	$ 18.8
Beta	1.550
Diluted Shares Outstanding	172
Cost of Debt
Tax Rate	23.40
After-tax Cost of Debt	1.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.940
Total Debt	76,721
Total Equity	3,233.60
Total Capital	79,954.60
Debt Weighting	95.96
Equity Weighting	4.04
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	2,211	1,923	1,996	1,688	2,211	2,245.95	2,281.45	2,317.52	2,354.15	2,391.36
Operating Cash Flow	1,157	1,140	1,019	987	702	1,135.94	1,153.89	1,172.13	1,190.66	1,209.48
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	1,135.94	1,153.89	1,172.13	1,190.66	1,209.48
WACC
PV LFCF						1,116.84	1,115.42	1,114	1,112.59	1,111.17
SUM PV LFCF										5,570.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	1.71
Free cash flow (t + 1)	1,233.67
Terminal Value	-425,404.18
Present Value of Terminal Value	-390,826.03

Intrinsic Value

Enterprise Value	-385,256.01
Net Debt	75,816
Equity Value	-461,072.01
Shares Outstanding	172
Equity Value Per Share	-2,680.65