Discounted Cash Flow (DCF) Analysis Levered
Strategic Education, Inc. (STRA)
$92.81
-0.12 (-0.13%)
All numbers are in Millions, Currency in USD
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 | 454.85 | 634.18 | 997.14 | 1,027.65 | 1,131.69 | 1,442.45 | 1,838.56 | 2,343.43 | 2,986.95 | 3,807.18 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 56.15 | 46.87 | 202.15 | 142.90 | 180.53 | 201.56 | 256.91 | 327.46 | 417.38 | 531.99 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -18.05 | -27.55 | -38.69 | -46.81 | -49.43 | -60.92 | -77.64 | -98.97 | -126.14 | -160.78 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 38.10 | 19.32 | 163.46 | 96.09 | 131.09 | 140.64 | 179.26 | 228.49 | 291.23 | 371.21 |
Weighted Average Cost Of Capital
Share price | $ 92.81 |
---|---|
Beta | 0.533 |
Diluted Shares Outstanding | 24.12 |
Cost of Debt | |
Tax Rate | 28.08 |
After-tax Cost of Debt | 3.60% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 6.034 |
Total Debt | 331.46 |
Total Equity | 2,238.76 |
Total Capital | 2,570.22 |
Debt Weighting | 12.90 |
Equity Weighting | 87.10 |
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 | 454.85 | 634.18 | 997.14 | 1,027.65 | 1,131.69 | 1,442.45 | 1,838.56 | 2,343.43 | 2,986.95 | 3,807.18 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 56.15 | 46.87 | 202.15 | 142.90 | 180.53 | 201.56 | 256.91 | 327.46 | 417.38 | 531.99 |
Capital Expenditure | -18.05 | -27.55 | -38.69 | -46.81 | -49.43 | -60.92 | -77.64 | -98.97 | -126.14 | -160.78 |
Free Cash Flow | 38.10 | 19.32 | 163.46 | 96.09 | 131.09 | 140.64 | 179.26 | 228.49 | 291.23 | 371.21 |
WACC | ||||||||||
PV LFCF | 100.73 | 121.45 | 146.42 | 176.53 | 212.84 | |||||
SUM PV LFCF | 1,001.01 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.72 |
Free cash flow (t + 1) | 378.63 |
Terminal Value | 10,178.28 |
Present Value of Terminal Value | 7,707.06 |
Intrinsic Value
Enterprise Value | 8,708.07 |
---|---|
Net Debt | 62.54 |
Equity Value | 8,645.54 |
Shares Outstanding | 24.12 |
Equity Value Per Share | 358.41 |