Discounted Cash Flow (DCF) Analysis Unlevered
Navient Corporation SR NT 6% 121543 (JSM)
$19.78
+0.53 (+2.75%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,648 | 3,223 | 3,922.86 | 4,774.69 | 5,811.49 | 7,073.42 | 8,609.38 |
|---|---|---|---|---|---|---|---|
| Revenue (%) | |||||||
| EBITDA | 2,282 | 2,948 | 3,484.40 | 4,241.02 | 5,161.93 | 6,282.82 | 7,647.10 |
| EBITDA (%) | |||||||
| EBIT | 2,252 | 2,929 | 3,450.61 | 4,199.90 | 5,111.88 | 6,221.90 | 7,572.96 |
| EBIT (%) | |||||||
| Depreciation | 30 | 19 | 33.78 | 41.12 | 50.05 | 60.92 | 74.15 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 1,172 | 1,702 | 1,903.92 | 2,317.34 | 2,820.54 | 3,433.01 | 4,178.47 |
|---|---|---|---|---|---|---|---|
| Total Cash (%) | |||||||
| Account Receivables | - | - | - | - | - | - | - |
| Account Receivables (%) | |||||||
| Inventories | - | - | - | - | - | - | - |
| Inventories (%) | |||||||
| Accounts Payable | - | - | - | - | - | - | - |
| Accounts Payable (%) | |||||||
| Capital Expenditure | - | - | - | - | - | - | - |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 19.78 |
|---|---|
| Beta | 0.000 |
| Diluted Shares Outstanding | 274.10 |
| Cost of Debt | |
| Tax Rate | 22.01 |
| After-tax Cost of Debt | 2.45% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 3.494 |
| Total Debt | 66,896 |
| Total Equity | 5,421.78 |
| Total Capital | 72,317.78 |
| Debt Weighting | 92.50 |
| Equity Weighting | 7.50 |
| Wacc |
Build Up Free Cash
Year A/P | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 2,648 | 3,223 | 3,922.86 | 4,774.69 | 5,811.49 | 7,073.42 | 8,609.38 |
|---|---|---|---|---|---|---|---|
| EBITDA | 2,282 | 2,948 | 3,484.40 | 4,241.02 | 5,161.93 | 6,282.82 | 7,647.10 |
| EBIT | 2,252 | 2,929 | 3,450.61 | 4,199.90 | 5,111.88 | 6,221.90 | 7,572.96 |
| Tax Rate | 23.40% | 22.01% | 22.70% | 22.70% | 22.70% | 22.70% | 22.70% |
| EBIAT | 1,725.09 | 2,284.41 | 2,667.24 | 3,246.42 | 3,951.37 | 4,809.38 | 5,853.72 |
| Depreciation | 30 | 19 | 33.78 | 41.12 | 50.05 | 60.92 | 74.15 |
| Accounts Receivable | - | - | - | - | - | - | - |
| Inventories | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - |
| Capital Expenditure | - | - | - | - | - | - | - |
| UFCF | - | - | 2,701.03 | 3,287.54 | 4,001.41 | 4,870.30 | 5,927.86 |
| WACC | |||||||
| PV UFCF | 2,839.43 | 3,370.72 | 4,001.41 | 4,750.12 | 5,638.93 | ||
| SUM PV UFCF | 19,112.93 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 2.53 |
| Free cash flow (t + 1) | 6,046.42 |
| Terminal Value | 1,140,834.24 |
| Present Value of Terminal Value | 1,006,856.93 |
Intrinsic Value
| Enterprise Value | 1,025,969.85 |
|---|---|
| Net Debt | 65,361 |
| Equity Value | 960,608.85 |
| Shares Outstanding | 274.10 |
| Equity Value Per Share | 3,504.54 |