Discounted Cash Flow (DCF) Analysis Unlevered

Chegg, Inc. (CHGG)

$28.41

-0.15 (-0.53%)
All numbers are in Millions, Currency in USD
Stock DCF: -3.75 | 28.41 | 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 255.07321.08410.93644.34776.271,030.761,368.701,817.432,413.273,204.46
Revenue (%)
EBITDA 0.9320.5768.13127.8586.77112.09148.83197.63262.42348.46
EBITDA (%)
EBIT -18.41-2.2337.8865.4412.6426.9835.8347.5863.1883.89
EBIT (%)
Depreciation 19.3422.8130.2562.4174.1385.10113150.05199.24264.57
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 208.20468.01768.591,145.421,545.861,631.352,166.192,876.373,819.395,071.58
Total Cash (%)
Account Receivables 10.8512.7311.5312.9117.8531.6041.9755.7273.9998.25
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 7.058.187.368.5511.9920.5627.3036.2548.1463.92
Accounts Payable (%)
Capital Expenditure -26.14-31.22-42.33-139.88-105.11-135.08-179.36-238.17-316.25-419.94
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 28.41
Beta 0.972
Diluted Shares Outstanding 146.70
Cost of Debt
Tax Rate 125.41
After-tax Cost of Debt -0.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.293
Total Debt 1,697.27
Total Equity 4,167.72
Total Capital 5,864.98
Debt Weighting 28.94
Equity Weighting 71.06
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 255.07321.08410.93644.34776.271,030.761,368.701,817.432,413.273,204.46
EBITDA 0.9320.5768.13127.8586.77112.09148.83197.63262.42348.46
EBIT -18.41-2.2337.8865.4412.6426.9835.8347.5863.1883.89
Tax Rate -9.75%-10.63%-37.79%-622.53%125.41%-111.06%-111.06%-111.06%-111.06%-111.06%
EBIAT -20.20-2.4752.19472.80-3.2156.9575.62100.42133.34177.05
Depreciation 19.3422.8130.2562.4174.1385.10113150.05199.24264.57
Accounts Receivable --1.881.20-1.38-4.94-13.75-10.36-13.76-18.27-24.26
Inventories ----------
Accounts Payable -1.13-0.821.193.448.576.748.9511.8815.78
Capital Expenditure -26.14-31.22-42.33-139.88-105.11-135.08-179.36-238.17-316.25-419.94
UFCF -27.01-11.6440.50395.13-35.681.795.647.499.9513.21
WACC
PV UFCF 1.695.036.317.929.93
SUM PV UFCF 30.89

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.86
Free cash flow (t + 1) 13.47
Terminal Value 348.97
Present Value of Terminal Value 262.50

Intrinsic Value

Enterprise Value 293.39
Net Debt 843.19
Equity Value -549.80
Shares Outstanding 146.70
Equity Value Per Share -3.75