Discounted Cash Flow (DCF) Analysis Levered

PRA Group, Inc. (PRAA)

$20.93

+1.78 (+9.29%)

All numbers are in Millions, Currency in USD

Stock DCF: 11.59 | 20.93 | overvalue

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	874.83	993.06	1,065.41	1,095.73	966.52	995.17	1,024.66	1,055.03	1,086.29	1,118.48
Revenue (%)
Operating Cash Flow	80.87	133.39	141.70	84.93	21.59	91.48	94.19	96.98	99.85	102.81
Operating Cash Flow (%)
Capital Expenditure	-20.52	-18.03	-17.23	-11.21	-13.25	-16.27	-16.75	-17.25	-17.76	-18.28
Capital Expenditure (%)
Free Cash Flow	60.35	115.35	124.47	73.71	8.34	75.21	77.44	79.73	82.10	84.53

Weighted Average Cost Of Capital

Share price	$ 20.93
Beta	1.156
Diluted Shares Outstanding	39.89
Cost of Debt
Tax Rate	24.32
After-tax Cost of Debt	166.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.147
Total Debt	59.38
Total Equity	834.86
Total Capital	894.24
Debt Weighting	6.64
Equity Weighting	93.36
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	874.83	993.06	1,065.41	1,095.73	966.52	995.17	1,024.66	1,055.03	1,086.29	1,118.48
Operating Cash Flow	80.87	133.39	141.70	84.93	21.59	91.48	94.19	96.98	99.85	102.81
Capital Expenditure	-20.52	-18.03	-17.23	-11.21	-13.25	-16.27	-16.75	-17.25	-17.76	-18.28
Free Cash Flow	60.35	115.35	124.47	73.71	8.34	75.21	77.44	79.73	82.10	84.53
WACC
PV LFCF						62.88	54.14	46.61	40.12	34.54
SUM PV LFCF										238.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	19.60
Free cash flow (t + 1)	86.22
Terminal Value	489.89
Present Value of Terminal Value	200.19

Intrinsic Value

Enterprise Value	438.48
Net Debt	-23.99
Equity Value	462.47
Shares Outstanding	39.89
Equity Value Per Share	11.59