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 1,718.531,796.101,800.071,831.481,941.502,002.112,064.612,129.062,195.532,264.06
Revenue (%)
EBITDA 324.41381.19390.23136.99394.48358.69369.88381.43393.34405.62
EBITDA (%)
EBIT 208.05227.20229.07-38.13194.29181.82187.50193.35199.39205.61
EBIT (%)
Depreciation 116.35153.99161.15175.13200.19176.87182.39188.08193.95200.01
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 58.52169.7792.89202.4693.80135.76139.99144.36148.87153.52
Total Cash (%)
Account Receivables 188.68212.38294.87309.38311.57288.80297.82307.12316.70326.59
Account Receivables (%)
Inventories 47.8539.4935.5843.6142.5446.1847.6249.1150.6452.22
Inventories (%)
Accounts Payable 139.2190.1090.9893.6995.79113116.53120.17123.92127.78
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 1,718.531,796.101,800.071,831.481,941.502,002.112,064.612,129.062,195.532,264.06
EBITDA 324.41381.19390.23136.99394.48358.69369.88381.43393.34405.62
EBIT 208.05227.20229.07-38.13194.29181.82187.50193.35199.39205.61
Tax Rate 40.54%10.16%20.99%-17.74%15.72%13.93%13.93%13.93%13.93%13.93%
EBIAT 123.71204.11181-44.90163.75156.49161.37166.41171.61176.96
Depreciation 116.35153.99161.15175.13200.19176.87182.39188.08193.95200.01
Accounts Receivable --23.70-82.49-14.52-2.1922.77-9.02-9.30-9.59-9.89
Inventories -8.363.91-8.031.08-3.64-1.44-1.49-1.53-1.58
Accounts Payable --49.110.882.712.1017.213.533.643.753.87
Capital Expenditure -110.70-140.91-86.66-90.43-133.21-123.73-127.59-131.58-135.68-139.92
UFCF 129.37152.75177.7919.96231.71245.96209.24215.77222.51229.45
WACC
PV UFCF 232.52187182.30177.72173.25
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