Discounted Cash Flow (DCF) Analysis Levered

Nelnet, Inc. (NNI)

$89.68

-0.12 (-0.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 576.60 | 89.68 | undervalue

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	998.34	978.57	1,061.09	1,232.38	1,405.86	1,534.75	1,675.46	1,829.07	1,996.76	2,179.82
Revenue (%)
Operating Cash Flow	270.89	298.91	212.82	544.87	684.06	523.68	571.69	624.10	681.32	743.79
Operating Cash Flow (%)
Capital Expenditure	-125.02	-92.50	-113.31	-58.95	-59.42	-127.89	-139.62	-152.42	-166.39	-181.64
Capital Expenditure (%)
Free Cash Flow	145.87	206.42	99.50	485.91	624.64	395.79	432.08	471.69	514.93	562.14

Weighted Average Cost Of Capital

Share price	$ 89.68
Beta	0.830
Diluted Shares Outstanding	37.60
Cost of Debt
Tax Rate	20.04
After-tax Cost of Debt	2.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.545
Total Debt	14,637.19
Total Equity	3,372.24
Total Capital	18,009.43
Debt Weighting	81.28
Equity Weighting	18.72
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	998.34	978.57	1,061.09	1,232.38	1,405.86	1,534.75	1,675.46	1,829.07	1,996.76	2,179.82
Operating Cash Flow	270.89	298.91	212.82	544.87	684.06	523.68	571.69	624.10	681.32	743.79
Capital Expenditure	-125.02	-92.50	-113.31	-58.95	-59.42	-127.89	-139.62	-152.42	-166.39	-181.64
Free Cash Flow	145.87	206.42	99.50	485.91	624.64	395.79	432.08	471.69	514.93	562.14
WACC
PV LFCF						382.37	403.27	425.31	448.56	473.08
SUM PV LFCF										2,132.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.51
Free cash flow (t + 1)	573.38
Terminal Value	37,972.51
Present Value of Terminal Value	31,956.39

Intrinsic Value

Enterprise Value	34,088.98
Net Debt	12,407.13
Equity Value	21,681.85
Shares Outstanding	37.60
Equity Value Per Share	576.60