Discounted Cash Flow (DCF) Analysis Unlevered

Perdoceo Education Corporation (PRDO)

$14.48

-0.20 (-1.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 15.81 | 14.48 | 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 596.43581.30627.70687.31693.03720.36748.77778.30808.99840.89
Revenue (%)
EBITDA 49.6783.82101.72161.69166.75124.68129.60134.71140.02145.54
EBITDA (%)
EBIT 35.6874.4292.58146.91149.99110.29114.64119.16123.86128.74
EBIT (%)
Depreciation 13.999.399.1514.7916.7714.3914.9615.5516.1616.80
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 174.29228.82294.17406.36494.20354.25368.22382.74397.83413.52
Total Cash (%)
Account Receivables 20.0431.3256.4047.5644.7244.8146.5848.4250.3352.31
Account Receivables (%)
Inventories 1.110.760.580.600.900.900.940.981.011.05
Inventories (%)
Accounts Payable 8.519.1911.5313.2610.8412.0212.4912.9813.4914.03
Accounts Payable (%)
Capital Expenditure -6.33-6.73-5.17-9.77-10.45-8.61-8.95-9.30-9.67-10.05
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 14.48
Beta 1.166
Diluted Shares Outstanding 70.88
Cost of Debt
Tax Rate 26.46
After-tax Cost of Debt 1.51%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.020
Total Debt 44.95
Total Equity 1,026.36
Total Capital 1,071.31
Debt Weighting 4.20
Equity Weighting 95.80
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 596.43581.30627.70687.31693.03720.36748.77778.30808.99840.89
EBITDA 49.6783.82101.72161.69166.75124.68129.60134.71140.02145.54
EBIT 35.6874.4292.58146.91149.99110.29114.64119.16123.86128.74
Tax Rate 187.99%25.78%24.77%15.37%26.46%56.07%56.07%56.07%56.07%56.07%
EBIAT -31.3955.2369.65124.33110.3048.4450.3552.3454.4056.55
Depreciation 13.999.399.1514.7916.7714.3914.9615.5516.1616.80
Accounts Receivable --11.28-25.088.842.83-0.09-1.77-1.84-1.91-1.98
Inventories -0.350.19-0.02-0.310-0.04-0.04-0.04-0.04
Accounts Payable -0.682.341.73-2.421.180.470.490.510.53
Capital Expenditure -6.33-6.73-5.17-9.77-10.45-8.61-8.95-9.30-9.67-10.05
UFCF -23.7447.6451.06139.90116.7255.3255.0457.2159.4761.81
WACC
PV UFCF 50.8946.5844.5442.5940.73
SUM PV UFCF 225.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.70
Free cash flow (t + 1) 63.05
Terminal Value 941
Present Value of Terminal Value 620.07

Intrinsic Value

Enterprise Value 845.41
Net Debt -275.03
Equity Value 1,120.44
Shares Outstanding 70.88
Equity Value Per Share 15.81