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 998.34978.571,061.091,232.381,405.861,534.751,675.461,829.071,996.762,179.82
Revenue (%)
Operating Cash Flow 270.89298.91212.82544.87684.06523.68571.69624.10681.32743.79
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 145.87206.4299.50485.91624.64395.79432.08471.69514.93562.14

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 998.34978.571,061.091,232.381,405.861,534.751,675.461,829.071,996.762,179.82
Operating Cash Flow 270.89298.91212.82544.87684.06523.68571.69624.10681.32743.79
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 145.87206.4299.50485.91624.64395.79432.08471.69514.93562.14
WACC
PV LFCF 382.37403.27425.31448.56473.08
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