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
Stock DCF: 3,504.54 | 19.78 | undervalue

Operating Data

Year
A/P
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 2,6483,2233,922.864,774.695,811.497,073.428,609.38
Revenue (%)
EBITDA 2,2822,9483,484.404,241.025,161.936,282.827,647.10
EBITDA (%)
EBIT 2,2522,9293,450.614,199.905,111.886,221.907,572.96
EBIT (%)
Depreciation 301933.7841.1250.0560.9274.15
Depreciation (%)

Balance Sheet Data

Year
A/P
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 1,1721,7021,903.922,317.342,820.543,433.014,178.47
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 2,6483,2233,922.864,774.695,811.497,073.428,609.38
EBITDA 2,2822,9483,484.404,241.025,161.936,282.827,647.10
EBIT 2,2522,9293,450.614,199.905,111.886,221.907,572.96
Tax Rate 23.40%22.01%22.70%22.70%22.70%22.70%22.70%
EBIAT 1,725.092,284.412,667.243,246.423,951.374,809.385,853.72
Depreciation 301933.7841.1250.0560.9274.15
Accounts Receivable -------
Inventories -------
Accounts Payable -------
Capital Expenditure -------
UFCF --2,701.033,287.544,001.414,870.305,927.86
WACC
PV UFCF 2,839.433,370.724,001.414,750.125,638.93
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