Discounted Cash Flow (DCF) Analysis Unlevered

Adtalem Global Education Inc. (ATGE)

$38.42

+0.16 (+0.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.43 | 38.42 | overvalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,809.801,231.211,239.691,0521,112.38999.25897.62806.33724.32650.65
Revenue (%)
EBITDA 225.91185.31204.7028.79242.57137.08123.13110.6199.3689.26
EBITDA (%)
EBIT 141.85132.49152.96-72.18143.5273.9066.3859.6353.5748.12
EBIT (%)
Depreciation 84.0652.8251.74100.9799.0563.1856.7550.9845.7941.14
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 245.99434.94308.12509.48494.61333.09299.21268.78241.44216.89
Total Cash (%)
Account Receivables 173.36146.73157.8387.046897.1687.2778.4070.4263.26
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 64.2947.4857.6346.4856.074338.6334.7031.1728
Accounts Payable (%)
Capital Expenditure -48.99-66.53-64.75-44.14-48.66-43.78-39.32-35.32-31.73-28.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 38.42
Beta 0.993
Diluted Shares Outstanding 51.65
Cost of Debt
Tax Rate 39.37
After-tax Cost of Debt 1.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.478
Total Debt 1,293.89
Total Equity 1,984.20
Total Capital 3,278.10
Debt Weighting 39.47
Equity Weighting 60.53
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 1,809.801,231.211,239.691,0521,112.38999.25897.62806.33724.32650.65
EBITDA 225.91185.31204.7028.79242.57137.08123.13110.6199.3689.26
EBIT 141.85132.49152.96-72.18143.5273.9066.3859.6353.5748.12
Tax Rate 9.01%83.00%44.08%135.98%39.37%62.29%62.29%62.29%62.29%62.29%
EBIAT 129.0622.5285.5425.9787.0227.8725.0322.4920.2018.15
Depreciation 84.0652.8251.74100.9799.0563.1856.7550.9845.7941.14
Accounts Receivable -26.64-11.1070.7919.05-29.169.888.887.977.16
Inventories ----------
Accounts Payable --16.8110.15-11.149.59-13.07-4.37-3.93-3.53-3.17
Capital Expenditure -48.99-66.53-64.75-44.14-48.66-43.78-39.32-35.32-31.73-28.50
UFCF 164.1318.6471.57142.45166.045.0447.9743.0938.7134.77
WACC
PV UFCF 4.7843.2736.9231.5026.87
SUM PV UFCF 143.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.29
Free cash flow (t + 1) 35.47
Terminal Value 1,078.01
Present Value of Terminal Value 833.08

Intrinsic Value

Enterprise Value 976.42
Net Debt 799.28
Equity Value 177.14
Shares Outstanding 51.65
Equity Value Per Share 3.43