Discounted Cash Flow (DCF) Analysis Levered

Scholastic Corporation (SCHL)

$38.37

-0.30 (-0.78%)

All numbers are in Millions, Currency in USD

Stock DCF: 26.21 | 38.37 | overvalue

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	1,653.90	1,487.10	1,300.30	1,642.90	1,704	1,735.61	1,767.81	1,800.60	1,834	1,868.02
Revenue (%)
Operating Cash Flow	116.40	2.10	71	226	148.90	121.96	124.22	126.52	128.87	131.26
Operating Cash Flow (%)
Capital Expenditure	-95	-66	-47.20	-42	-62	-69.45	-70.74	-72.05	-73.39	-74.75
Capital Expenditure (%)
Free Cash Flow	21.40	-63.90	23.80	184	86.90	52.51	53.48	54.47	55.49	56.51

Weighted Average Cost Of Capital

Share price	$ 38.37
Beta	1.070
Diluted Shares Outstanding	34.73
Cost of Debt
Tax Rate	23.04
After-tax Cost of Debt	-4.65%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.645
Total Debt	101
Total Equity	1,332.67
Total Capital	1,433.67
Debt Weighting	7.04
Equity Weighting	92.96
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	1,653.90	1,487.10	1,300.30	1,642.90	1,704	1,735.61	1,767.81	1,800.60	1,834	1,868.02
Operating Cash Flow	116.40	2.10	71	226	148.90	121.96	124.22	126.52	128.87	131.26
Capital Expenditure	-95	-66	-47.20	-42	-62	-69.45	-70.74	-72.05	-73.39	-74.75
Free Cash Flow	21.40	-63.90	23.80	184	86.90	52.51	53.48	54.47	55.49	56.51
WACC
PV LFCF						48.33	45.31	42.48	39.83	37.34
SUM PV LFCF										213.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.64
Free cash flow (t + 1)	57.64
Terminal Value	868.14
Present Value of Terminal Value	573.64

Intrinsic Value

Enterprise Value	786.95
Net Debt	-123.50
Equity Value	910.45
Shares Outstanding	34.73
Equity Value Per Share	26.21