Discounted Cash Flow (DCF) Analysis Levered
Select Medical Holdings Corporation (SEM)
$29.28
-1.06 (-3.49%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 4,286.02 | 4,443.60 | 5,081.26 | 5,539.25 | 6,038.52 | 6,582.79 | 7,176.11 | 7,822.92 | 8,528.02 | 9,296.68 | 10,134.61 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||||||
| Operating Cash Flow | 346.60 | 238.13 | 494.19 | 427.84 | 466.41 | 508.45 | 554.27 | 604.23 | 658.69 | 718.06 | 782.78 |
| Operating Cash Flow (%) | |||||||||||
| Capital Expenditure | -161.63 | -233.24 | -167.28 | -227.34 | -247.83 | -270.16 | -294.51 | -321.06 | -350 | -381.54 | -415.93 |
| Capital Expenditure (%) | |||||||||||
| Free Cash Flow | 184.97 | 4.89 | 326.91 | 200.51 | 218.58 | 238.28 | 259.76 | 283.17 | 308.70 | 336.52 | 366.85 |
Weighted Average Cost Of Capital
| Share price | $ 29.28 |
|---|---|
| Beta | 1.349 |
| Diluted Shares Outstanding | 130.59 |
| Cost of Debt | |
| Tax Rate | 36.13 |
| After-tax Cost of Debt | 1.83% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.002 |
| Total Debt | 4,762.18 |
| Total Equity | 3,823.79 |
| Total Capital | 8,585.98 |
| Debt Weighting | 55.46 |
| Equity Weighting | 44.54 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Projected | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 4,286.02 | 4,443.60 | 5,081.26 | 5,539.25 | 6,038.52 | 6,582.79 | 7,176.11 | 7,822.92 | 8,528.02 | 9,296.68 | 10,134.61 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 346.60 | 238.13 | 494.19 | 427.84 | 466.41 | 508.45 | 554.27 | 604.23 | 658.69 | 718.06 | 782.78 |
| Capital Expenditure | -161.63 | -233.24 | -167.28 | -227.34 | -247.83 | -270.16 | -294.51 | -321.06 | -350 | -381.54 | -415.93 |
| Free Cash Flow | 184.97 | 4.89 | 326.91 | 200.51 | 218.58 | 238.28 | 259.76 | 283.17 | 308.70 | 336.52 | 366.85 |
| WACC | |||||||||||
| PV LFCF | 211.48 | 218.58 | 225.92 | 233.51 | 241.36 | 249.47 | 257.85 | 266.51 | |||
| SUM PV LFCF | 1,317.01 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.47 |
| Free cash flow (t + 1) | 374.19 |
| Terminal Value | 10,783.53 |
| Present Value of Terminal Value | 8,262.59 |
Intrinsic Value
| Enterprise Value | 9,579.60 |
|---|---|
| Net Debt | 4,687.87 |
| Equity Value | 4,891.72 |
| Shares Outstanding | 130.59 |
| Equity Value Per Share | 37.46 |