Discounted Cash Flow (DCF) Analysis Unlevered

John Wiley & Sons, Inc. (JW-B)

$53.18

-0.64 (-%)

All numbers are in Millions, Currency in USD

Stock DCF: 83.80 | 53.18 | undervalue

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	1,718.53	1,796.10	1,800.07	1,831.48	1,941.50	2,002.11	2,064.61	2,129.06	2,195.53	2,264.06
Revenue (%)
EBITDA	324.41	381.19	390.23	136.99	394.48	358.69	369.88	381.43	393.34	405.62
EBITDA (%)
EBIT	208.05	227.20	229.07	-38.13	194.29	181.82	187.50	193.35	199.39	205.61
EBIT (%)
Depreciation	116.35	153.99	161.15	175.13	200.19	176.87	182.39	188.08	193.95	200.01
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	58.52	169.77	92.89	202.46	93.80	135.76	139.99	144.36	148.87	153.52
Total Cash (%)
Account Receivables	188.68	212.38	294.87	309.38	311.57	288.80	297.82	307.12	316.70	326.59
Account Receivables (%)
Inventories	47.85	39.49	35.58	43.61	42.54	46.18	47.62	49.11	50.64	52.22
Inventories (%)
Accounts Payable	139.21	90.10	90.98	93.69	95.79	113	116.53	120.17	123.92	127.78
Accounts Payable (%)
Capital Expenditure	-110.70	-140.91	-86.66	-90.43	-133.21	-123.73	-127.59	-131.58	-135.68	-139.92
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 53.18
Beta	0.806
Diluted Shares Outstanding	56.46
Cost of Debt
Tax Rate	15.72
After-tax Cost of Debt	1.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.167
Total Debt	989.86
Total Equity	3,002.60
Total Capital	3,992.46
Debt Weighting	24.79
Equity Weighting	75.21
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	1,718.53	1,796.10	1,800.07	1,831.48	1,941.50	2,002.11	2,064.61	2,129.06	2,195.53	2,264.06
EBITDA	324.41	381.19	390.23	136.99	394.48	358.69	369.88	381.43	393.34	405.62
EBIT	208.05	227.20	229.07	-38.13	194.29	181.82	187.50	193.35	199.39	205.61
Tax Rate	40.54%	10.16%	20.99%	-17.74%	15.72%	13.93%	13.93%	13.93%	13.93%	13.93%
EBIAT	123.71	204.11	181	-44.90	163.75	156.49	161.37	166.41	171.61	176.96
Depreciation	116.35	153.99	161.15	175.13	200.19	176.87	182.39	188.08	193.95	200.01
Accounts Receivable	-	-23.70	-82.49	-14.52	-2.19	22.77	-9.02	-9.30	-9.59	-9.89
Inventories	-	8.36	3.91	-8.03	1.08	-3.64	-1.44	-1.49	-1.53	-1.58
Accounts Payable	-	-49.11	0.88	2.71	2.10	17.21	3.53	3.64	3.75	3.87
Capital Expenditure	-110.70	-140.91	-86.66	-90.43	-133.21	-123.73	-127.59	-131.58	-135.68	-139.92
UFCF	129.37	152.75	177.79	19.96	231.71	245.96	209.24	215.77	222.51	229.45
WACC
PV UFCF						232.52	187	182.30	177.72	173.25
SUM PV UFCF										952.78

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.78
Free cash flow (t + 1)	234.04
Terminal Value	6,191.54
Present Value of Terminal Value	4,674.99

Intrinsic Value

Enterprise Value	5,627.77
Net Debt	896.07
Equity Value	4,731.71
Shares Outstanding	56.46
Equity Value Per Share	83.80