Discounted Cash Flow (DCF) Analysis Levered

Scientific Games Corporation (SGMS)

$58.07

+1.32 (+2.33%)
All numbers are in Millions, Currency in USD
Stock DCF: -188.43 | 58.07 | overvalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,083.603,363.203,4002,7242,1531,987.851,835.371,694.581,564.601,444.58
Revenue (%)
Operating Cash Flow 507.10346.10546471685365.37337.35311.47287.58265.52
Operating Cash Flow (%)
Capital Expenditure -293.70-390.80-285-190-171-176.70-163.14-150.63-139.07-128.41
Capital Expenditure (%)
Free Cash Flow 213.40-44.70261281514188.68174.20160.84148.50137.11

Weighted Average Cost Of Capital

Share price $ 58.07
Beta 1.868
Diluted Shares Outstanding 98
Cost of Debt
Tax Rate 226.19
After-tax Cost of Debt -6.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.619
Total Debt 8,730
Total Equity 5,690.86
Total Capital 14,420.86
Debt Weighting 60.54
Equity Weighting 39.46
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 3,083.603,363.203,4002,7242,1531,987.851,835.371,694.581,564.601,444.58
Operating Cash Flow 507.10346.10546471685365.37337.35311.47287.58265.52
Capital Expenditure -293.70-390.80-285-190-171-176.70-163.14-150.63-139.07-128.41
Free Cash Flow 213.40-44.70261281514188.68174.20160.84148.50137.11
WACC
PV LFCF 187.20171.48157.09143.90131.82
SUM PV LFCF 791.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 0.79
Free cash flow (t + 1) 139.85
Terminal Value -11,558.19
Present Value of Terminal Value -11,112.27

Intrinsic Value

Enterprise Value -10,320.77
Net Debt 8,145
Equity Value -18,465.77
Shares Outstanding 98
Equity Value Per Share -188.43