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	1,628.40	1,653.90	1,487.10	1,300.30	1,642.90	1,664.53	1,686.45	1,708.66	1,731.16	1,753.95
Revenue (%)
Operating Cash Flow	141.50	116.40	2.10	71	226	116.80	118.34	119.90	121.48	123.08
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	20	21.40	-63.90	23.80	184	37.47	37.96	38.46	38.97	39.48

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	1,628.40	1,653.90	1,487.10	1,300.30	1,642.90	1,664.53	1,686.45	1,708.66	1,731.16	1,753.95
Operating Cash Flow	141.50	116.40	2.10	71	226	116.80	118.34	119.90	121.48	123.08
Capital Expenditure	-121.50	-95	-66	-47.20	-42	-79.33	-80.38	-81.43	-82.51	-83.59
Free Cash Flow	20	21.40	-63.90	23.80	184	37.47	37.96	38.46	38.97	39.48
WACC
PV LFCF						34.52	32.22	30.08	28.08	26.21
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