Discounted Cash Flow (DCF) Analysis Levered

Science Applications International ... (SAIC)

$117.41

+1.44 (+1.24%)

All numbers are in Millions, Currency in USD

Stock DCF: 304.58 | 117.41 | 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	4,659	6,379	7,056	7,394	7,704	8,792.45	10,034.68	11,452.42	13,070.47	14,917.11
Revenue (%)
Operating Cash Flow	184	458	755	518	532	628.49	717.29	818.63	934.29	1,066.29
Operating Cash Flow (%)
Capital Expenditure	-28	-21	-46	-36	-25	-42.09	-48.04	-54.82	-62.57	-71.41
Capital Expenditure (%)
Free Cash Flow	156	437	709	482	507	586.40	669.25	763.81	871.72	994.88

Weighted Average Cost Of Capital

Share price	$ 117.41
Beta	0.701
Diluted Shares Outstanding	55.80
Cost of Debt
Tax Rate	20.00
After-tax Cost of Debt	3.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.607
Total Debt	2,526
Total Equity	6,551.48
Total Capital	9,077.48
Debt Weighting	27.83
Equity Weighting	72.17
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	4,659	6,379	7,056	7,394	7,704	8,792.45	10,034.68	11,452.42	13,070.47	14,917.11
Operating Cash Flow	184	458	755	518	532	628.49	717.29	818.63	934.29	1,066.29
Capital Expenditure	-28	-21	-46	-36	-25	-42.09	-48.04	-54.82	-62.57	-71.41
Free Cash Flow	156	437	709	482	507	586.40	669.25	763.81	871.72	994.88
WACC
PV LFCF						550.35	589.50	631.43	676.34	724.44
SUM PV LFCF										3,172.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.55
Free cash flow (t + 1)	1,014.78
Terminal Value	22,302.81
Present Value of Terminal Value	16,240.24

Intrinsic Value

Enterprise Value	19,412.29
Net Debt	2,417
Equity Value	16,995.29
Shares Outstanding	55.80
Equity Value Per Share	304.58