Discounted Cash Flow (DCF) Analysis Levered

Schnitzer Steel Industries, Inc. (SCHN)

$33.45

+0.18 (+0.54%)
All numbers are in Millions, Currency in USD
Stock DCF: 77.61 | 33.45 | undervalue

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 2,364.722,132.781,712.342,758.553,485.823,990.744,568.815,230.615,988.276,855.69
Revenue (%)
Operating Cash Flow 159.68144.74124.60190.06237.68275.55315.46361.16413.47473.37
Operating Cash Flow (%)
Capital Expenditure -77.63-94.61-82-118.87-150.12-168.60-193.02-220.98-252.99-289.63
Capital Expenditure (%)
Free Cash Flow 82.0550.1342.5971.2087.55106.95122.45140.18160.49183.73

Weighted Average Cost Of Capital

Share price $ 33.45
Beta 1.450
Diluted Shares Outstanding 29.53
Cost of Debt
Tax Rate 22.10
After-tax Cost of Debt 1.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.536
Total Debt 371.87
Total Equity 987.75
Total Capital 1,359.62
Debt Weighting 27.35
Equity Weighting 72.65
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 2,364.722,132.781,712.342,758.553,485.823,990.744,568.815,230.615,988.276,855.69
Operating Cash Flow 159.68144.74124.60190.06237.68275.55315.46361.16413.47473.37
Capital Expenditure -77.63-94.61-82-118.87-150.12-168.60-193.02-220.98-252.99-289.63
Free Cash Flow 82.0550.1342.5971.2087.55106.95122.45140.18160.49183.73
WACC
PV LFCF 72.3276.5681.0685.8190.85
SUM PV LFCF 556.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.14
Free cash flow (t + 1) 187.41
Terminal Value 3,052.27
Present Value of Terminal Value 2,063.91

Intrinsic Value

Enterprise Value 2,619.96
Net Debt 328.07
Equity Value 2,291.89
Shares Outstanding 29.53
Equity Value Per Share 77.61