Discounted Cash Flow (DCF) Analysis Levered

StepStone Group Inc. (STEP)

$29.79

+0.76 (+2.62%)
All numbers are in Millions, Currency in USD
Stock DCF: 7,459.96 | 29.79 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 256.27446.61787.721,365.532,385.134,166.067,276.7812,710.1922,200.63
Revenue (%)
Operating Cash Flow 51.4565.93149.30214.28414.33723.701,264.072,207.923,856.52
Operating Cash Flow (%)
Capital Expenditure -3.04-0.84-1.26-2.10-10.07-17.58-30.71-53.64-93.70
Capital Expenditure (%)
Free Cash Flow 48.4165.09148.04212.18404.26706.111,233.352,154.283,762.83

Weighted Average Cost Of Capital

Share price $ 29.79
Beta 0.000
Diluted Shares Outstanding 53.60
Cost of Debt
Tax Rate 62.17
After-tax Cost of Debt 1.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity 2.849
Total Debt -
Total Equity 1,596.75
Total Capital 1,596.75
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 256.27446.61787.721,365.532,385.134,166.067,276.7812,710.1922,200.63
Operating Cash Flow 51.4565.93149.30214.28414.33723.701,264.072,207.923,856.52
Capital Expenditure -3.04-0.84-1.26-2.10-10.07-17.58-30.71-53.64-93.70
Free Cash Flow 48.4165.09148.04212.18404.26706.111,233.352,154.283,762.83
WACC
PV LFCF 404.26686.551,165.951,980.113,362.77
SUM PV LFCF 7,389.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 2.85
Free cash flow (t + 1) 3,838.08
Terminal Value 451,539.30
Present Value of Terminal Value 392,350.38

Intrinsic Value

Enterprise Value 399,739.43
Net Debt -116.39
Equity Value 399,855.81
Shares Outstanding 53.60
Equity Value Per Share 7,459.96