Discounted Cash Flow (DCF) Analysis Levered

Navient Corporation (NAVI)

$16.13

+0.02 (+0.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 2,218.10 | 16.13 | undervalue

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 1,9961,6882,2111,7374,8256,898.459,862.9214,101.3120,161.0728,824.89
Revenue (%)
Operating Cash Flow 1,0199877023056762,384.703,409.484,874.646,969.429,964.38
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----2,384.703,409.484,874.646,969.429,964.38

Weighted Average Cost Of Capital

Share price $ 16.13
Beta 1.424
Diluted Shares Outstanding 123
Cost of Debt
Tax Rate 27.16
After-tax Cost of Debt 4.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.020
Total Debt 57,628
Total Equity 1,983.99
Total Capital 59,611.99
Debt Weighting 96.67
Equity Weighting 3.33
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 1,9961,6882,2111,7374,8256,898.459,862.9214,101.3120,161.0728,824.89
Operating Cash Flow 1,0199877023056762,384.703,409.484,874.646,969.429,964.38
Capital Expenditure ----------
Free Cash Flow -----2,384.703,409.484,874.646,969.429,964.38
WACC
PV LFCF 2,278.523,112.624,252.075,808.637,935
SUM PV LFCF 23,386.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.66
Free cash flow (t + 1) 10,163.67
Terminal Value 382,092.92
Present Value of Terminal Value 304,274.35

Intrinsic Value

Enterprise Value 327,661.19
Net Debt 54,835
Equity Value 272,826.19
Shares Outstanding 123
Equity Value Per Share 2,218.10