Discounted Cash Flow (DCF) Analysis Unlevered

Nelnet, Inc. (NNI)

$89.68

-0.12 (-0.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 820.81 | 89.68 | undervalue

Operating Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	998.34	978.57	1,061.09	1,232.38	1,405.86	1,534.75	1,675.46	1,829.07	1,996.76	2,179.82
Revenue (%)
EBITDA	1,141.27	282.30	572	582.85	1,024.79	973.83	1,063.12	1,160.58	1,266.99	1,383.14
EBITDA (%)
EBIT	956.59	89.64	373.53	450.52	848.54	727.76	794.49	867.33	946.84	1,033.65
EBIT (%)
Depreciation	184.68	192.66	198.47	132.32	176.25	246.07	268.63	293.26	320.14	349.49
Depreciation (%)

Balance Sheet Data

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Total Cash	192.03	433.58	1,462.80	2,644.15	2,136.50	1,743.26	1,903.08	2,077.56	2,268.03	2,475.97
Total Cash (%)
Account Receivables	755.10	876.31	97.96	171.42	15,243.89	3,906.36	4,264.50	4,655.47	5,082.29	5,548.24
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	61.68	47.29	28.70	9.67	36.05	52.38	57.18	62.42	68.14	74.39
Accounts Payable (%)
Capital Expenditure	-125.02	-92.50	-113.31	-58.95	-59.42	-127.89	-139.62	-152.42	-166.39	-181.64
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 89.68
Beta	0.830
Diluted Shares Outstanding	37.60
Cost of Debt
Tax Rate	20.04
After-tax Cost of Debt	2.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.545
Total Debt	14,637.19
Total Equity	3,372.24
Total Capital	18,009.43
Debt Weighting	81.28
Equity Weighting	18.72
Wacc

Build Up Free Cash

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	998.34	978.57	1,061.09	1,232.38	1,405.86	1,534.75	1,675.46	1,829.07	1,996.76	2,179.82
EBITDA	1,141.27	282.30	572	582.85	1,024.79	973.83	1,063.12	1,160.58	1,266.99	1,383.14
EBIT	956.59	89.64	373.53	450.52	848.54	727.76	794.49	867.33	946.84	1,033.65
Tax Rate	20.39%	19.77%	21.76%	21.67%	20.04%	20.73%	20.73%	20.73%	20.73%	20.73%
EBIAT	761.52	71.92	292.23	352.88	678.45	576.91	629.80	687.54	750.58	819.39
Depreciation	184.68	192.66	198.47	132.32	176.25	246.07	268.63	293.26	320.14	349.49
Accounts Receivable	-	-121.21	778.35	-73.46	-15,072.47	11,337.52	-358.14	-390.97	-426.82	-465.95
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	-14.39	-18.58	-19.04	26.38	16.33	4.80	5.24	5.72	6.25
Capital Expenditure	-125.02	-92.50	-113.31	-58.95	-59.42	-127.89	-139.62	-152.42	-166.39	-181.64
UFCF	821.18	36.48	1,137.17	333.77	-14,250.81	12,048.94	405.48	442.65	483.24	527.54
WACC
PV UFCF						11,640.37	378.45	399.13	420.95	443.96
SUM PV UFCF										13,282.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.51
Free cash flow (t + 1)	538.09
Terminal Value	35,635.21
Present Value of Terminal Value	29,989.40

Intrinsic Value

Enterprise Value	43,272.26
Net Debt	12,407.13
Equity Value	30,865.12
Shares Outstanding	37.60
Equity Value Per Share	820.81