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
Stock DCF: 37.46 | 29.28 | undervalue

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 4,286.024,443.605,081.265,539.256,038.526,582.797,176.117,822.928,528.029,296.6810,134.61
Revenue (%)
Operating Cash Flow 346.60238.13494.19427.84466.41508.45554.27604.23658.69718.06782.78
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 184.974.89326.91200.51218.58238.28259.76283.17308.70336.52366.85

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 4,286.024,443.605,081.265,539.256,038.526,582.797,176.117,822.928,528.029,296.6810,134.61
Operating Cash Flow 346.60238.13494.19427.84466.41508.45554.27604.23658.69718.06782.78
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 184.974.89326.91200.51218.58238.28259.76283.17308.70336.52366.85
WACC
PV LFCF 211.48218.58225.92233.51241.36249.47257.85266.51
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