Discounted Cash Flow (DCF) Analysis Levered

Strategic Education, Inc. (STRA)

$92.81

-0.12 (-0.13%)
All numbers are in Millions, Currency in USD
Stock DCF: 358.41 | 92.81 | undervalue

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 454.85634.18997.141,027.651,131.691,442.451,838.562,343.432,986.953,807.18
Revenue (%)
Operating Cash Flow 56.1546.87202.15142.90180.53201.56256.91327.46417.38531.99
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 38.1019.32163.4696.09131.09140.64179.26228.49291.23371.21

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 454.85634.18997.141,027.651,131.691,442.451,838.562,343.432,986.953,807.18
Operating Cash Flow 56.1546.87202.15142.90180.53201.56256.91327.46417.38531.99
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 38.1019.32163.4696.09131.09140.64179.26228.49291.23371.21
WACC
PV LFCF 100.73121.45146.42176.53212.84
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