Discounted Cash Flow (DCF) Analysis Levered

Scholastic Corporation (SCHL)

$43.87

+0.60 (+1.39%)
All numbers are in Millions, Currency in USD
Stock DCF: 21.91 | 43.87 | 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 1,628.401,653.901,487.101,300.301,642.901,664.531,686.451,708.661,731.161,753.95
Revenue (%)
Operating Cash Flow 141.50116.402.1071226116.80118.34119.90121.48123.08
Operating Cash Flow (%)
Capital Expenditure -121.50-95-66-47.20-42-79.33-80.38-81.43-82.51-83.59
Capital Expenditure (%)
Free Cash Flow 2021.40-63.9023.8018437.4737.9638.4638.9739.48

Weighted Average Cost Of Capital

Share price $ 43.87
Beta 1.105
Diluted Shares Outstanding 35.56
Cost of Debt
Tax Rate 9.81
After-tax Cost of Debt 2.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.904
Total Debt 97.10
Total Equity 1,560.19
Total Capital 1,657.29
Debt Weighting 5.86
Equity Weighting 94.14
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 1,628.401,653.901,487.101,300.301,642.901,664.531,686.451,708.661,731.161,753.95
Operating Cash Flow 141.50116.402.1071226116.80118.34119.90121.48123.08
Capital Expenditure -121.50-95-66-47.20-42-79.33-80.38-81.43-82.51-83.59
Free Cash Flow 2021.40-63.9023.8018437.4737.9638.4638.9739.48
WACC
PV LFCF 34.5232.2230.0828.0826.21
SUM PV LFCF 151.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.54
Free cash flow (t + 1) 40.27
Terminal Value 615.78
Present Value of Terminal Value 408.77

Intrinsic Value

Enterprise Value 559.88
Net Debt -219.50
Equity Value 779.38
Shares Outstanding 35.56
Equity Value Per Share 21.91