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 1,653.901,487.101,300.301,642.901,7041,735.611,767.811,800.601,8341,868.02
Revenue (%)
Operating Cash Flow 116.402.1071226148.90121.96124.22126.52128.87131.26
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 21.40-63.9023.8018486.9052.5153.4854.4755.4956.51

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 1,653.901,487.101,300.301,642.901,7041,735.611,767.811,800.601,8341,868.02
Operating Cash Flow 116.402.1071226148.90121.96124.22126.52128.87131.26
Capital Expenditure -95-66-47.20-42-62-69.45-70.74-72.05-73.39-74.75
Free Cash Flow 21.40-63.9023.8018486.9052.5153.4854.4755.4956.51
WACC
PV LFCF 48.3345.3142.4839.8337.34
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