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
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 | 1,809.80 | 1,231.21 | 1,239.69 | 1,052 | 1,112.38 | 999.25 | 897.62 | 806.33 | 724.32 | 650.65 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 225.91 | 185.31 | 204.70 | 28.79 | 242.57 | 137.08 | 123.13 | 110.61 | 99.36 | 89.26 |
| EBITDA (%) | ||||||||||
| EBIT | 141.85 | 132.49 | 152.96 | -72.18 | 143.52 | 73.90 | 66.38 | 59.63 | 53.57 | 48.12 |
| EBIT (%) | ||||||||||
| Depreciation | 84.06 | 52.82 | 51.74 | 100.97 | 99.05 | 63.18 | 56.75 | 50.98 | 45.79 | 41.14 |
| 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 | 245.99 | 434.94 | 308.12 | 509.48 | 494.61 | 333.09 | 299.21 | 268.78 | 241.44 | 216.89 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 173.36 | 146.73 | 157.83 | 87.04 | 68 | 97.16 | 87.27 | 78.40 | 70.42 | 63.26 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 64.29 | 47.48 | 57.63 | 46.48 | 56.07 | 43 | 38.63 | 34.70 | 31.17 | 28 |
| 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 | 1,809.80 | 1,231.21 | 1,239.69 | 1,052 | 1,112.38 | 999.25 | 897.62 | 806.33 | 724.32 | 650.65 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 225.91 | 185.31 | 204.70 | 28.79 | 242.57 | 137.08 | 123.13 | 110.61 | 99.36 | 89.26 |
| EBIT | 141.85 | 132.49 | 152.96 | -72.18 | 143.52 | 73.90 | 66.38 | 59.63 | 53.57 | 48.12 |
| Tax Rate | 9.01% | 83.00% | 44.08% | 135.98% | 39.37% | 62.29% | 62.29% | 62.29% | 62.29% | 62.29% |
| EBIAT | 129.06 | 22.52 | 85.54 | 25.97 | 87.02 | 27.87 | 25.03 | 22.49 | 20.20 | 18.15 |
| Depreciation | 84.06 | 52.82 | 51.74 | 100.97 | 99.05 | 63.18 | 56.75 | 50.98 | 45.79 | 41.14 |
| Accounts Receivable | - | 26.64 | -11.10 | 70.79 | 19.05 | -29.16 | 9.88 | 8.88 | 7.97 | 7.16 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -16.81 | 10.15 | -11.14 | 9.59 | -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 | 164.13 | 18.64 | 71.57 | 142.45 | 166.04 | 5.04 | 47.97 | 43.09 | 38.71 | 34.77 |
| WACC | ||||||||||
| PV UFCF | 4.78 | 43.27 | 36.92 | 31.50 | 26.87 | |||||
| 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 |