Discounted Cash Flow (DCF) Analysis Levered

Perdoceo Education Corporation (PRDO)

$13.9141

-0.79 (-5.35%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.76 | 13.9141 | undervalue

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 596.43581.30627.70687.31693.03720.36748.77778.30808.99840.89
Revenue (%)
Operating Cash Flow -21.7956.9973.09179.96191.12103.09107.15111.38115.77120.34
Operating Cash Flow (%)
Capital Expenditure -6.33-6.73-5.17-9.77-10.45-8.61-8.95-9.30-9.67-10.05
Capital Expenditure (%)
Free Cash Flow -28.1250.2567.91170.19180.6694.4898.21102.08106.11110.29

Weighted Average Cost Of Capital

Share price $ 13.9,141
Beta 1.166
Diluted Shares Outstanding 70.88
Cost of Debt
Tax Rate 26.46
After-tax Cost of Debt 1.51%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.146
Total Debt 44.95
Total Equity 986.25
Total Capital 1,031.19
Debt Weighting 4.36
Equity Weighting 95.64
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 596.43581.30627.70687.31693.03720.36748.77778.30808.99840.89
Operating Cash Flow -21.7956.9973.09179.96191.12103.09107.15111.38115.77120.34
Capital Expenditure -6.33-6.73-5.17-9.77-10.45-8.61-8.95-9.30-9.67-10.05
Free Cash Flow -28.1250.2567.91170.19180.6694.4898.21102.08106.11110.29
WACC
PV LFCF 86.8382.9579.2475.6972.31
SUM PV LFCF 397.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.81
Free cash flow (t + 1) 112.50
Terminal Value 1,651.93
Present Value of Terminal Value 1,083.04

Intrinsic Value

Enterprise Value 1,480.07
Net Debt -275.03
Equity Value 1,755.10
Shares Outstanding 70.88
Equity Value Per Share 24.76