Discounted Cash Flow (DCF) Analysis Levered

VSE Corporation (VSEC)

$53.24

+0.39 (+0.74%)

All numbers are in Millions, Currency in USD

Stock DCF: -5.84 | 53.24 | 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	760.11	697.22	752.63	661.66	750.85	752.85	754.86	756.87	758.89	760.91
Revenue (%)
Operating Cash Flow	50.42	18.85	17.99	35.76	-17.60	22.27	22.33	22.39	22.45	22.51
Operating Cash Flow (%)
Capital Expenditure	-3.74	-3.12	-9.63	-4.43	-10.52	-6.46	-6.48	-6.49	-6.51	-6.53
Capital Expenditure (%)
Free Cash Flow	46.68	15.74	8.36	31.33	-28.12	15.81	15.85	15.89	15.94	15.98

Weighted Average Cost Of Capital

Share price	$ 53.24
Beta	1.468
Diluted Shares Outstanding	12.63
Cost of Debt
Tax Rate	15.71
After-tax Cost of Debt	3.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.449
Total Debt	317.73
Total Equity	672.57
Total Capital	990.30
Debt Weighting	32.08
Equity Weighting	67.92
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	760.11	697.22	752.63	661.66	750.85	752.85	754.86	756.87	758.89	760.91
Operating Cash Flow	50.42	18.85	17.99	35.76	-17.60	22.27	22.33	22.39	22.45	22.51
Capital Expenditure	-3.74	-3.12	-9.63	-4.43	-10.52	-6.46	-6.48	-6.49	-6.51	-6.53
Free Cash Flow	46.68	15.74	8.36	31.33	-28.12	15.81	15.85	15.89	15.94	15.98
WACC
PV LFCF						9.90	9.18	8.51	7.89	7.32
SUM PV LFCF										63.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.12
Free cash flow (t + 1)	16.30
Terminal Value	266.31
Present Value of Terminal Value	180.24

Intrinsic Value

Enterprise Value	243.48
Net Debt	317.21
Equity Value	-73.73
Shares Outstanding	12.63
Equity Value Per Share	-5.84