Discounted Cash Flow (DCF) Analysis Unlevered
Perdoceo Education Corporation (PRDO)
$14.48
-0.20 (-1.36%)
All numbers are in Millions, Currency in USD
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 | 596.43 | 581.30 | 627.70 | 687.31 | 693.03 | 720.36 | 748.77 | 778.30 | 808.99 | 840.89 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 49.67 | 83.82 | 101.72 | 161.69 | 166.75 | 124.68 | 129.60 | 134.71 | 140.02 | 145.54 |
| EBITDA (%) | ||||||||||
| EBIT | 35.68 | 74.42 | 92.58 | 146.91 | 149.99 | 110.29 | 114.64 | 119.16 | 123.86 | 128.74 |
| EBIT (%) | ||||||||||
| Depreciation | 13.99 | 9.39 | 9.15 | 14.79 | 16.77 | 14.39 | 14.96 | 15.55 | 16.16 | 16.80 |
| 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 | 174.29 | 228.82 | 294.17 | 406.36 | 494.20 | 354.25 | 368.22 | 382.74 | 397.83 | 413.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 20.04 | 31.32 | 56.40 | 47.56 | 44.72 | 44.81 | 46.58 | 48.42 | 50.33 | 52.31 |
| Account Receivables (%) | ||||||||||
| Inventories | 1.11 | 0.76 | 0.58 | 0.60 | 0.90 | 0.90 | 0.94 | 0.98 | 1.01 | 1.05 |
| Inventories (%) | ||||||||||
| Accounts Payable | 8.51 | 9.19 | 11.53 | 13.26 | 10.84 | 12.02 | 12.49 | 12.98 | 13.49 | 14.03 |
| 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 | 596.43 | 581.30 | 627.70 | 687.31 | 693.03 | 720.36 | 748.77 | 778.30 | 808.99 | 840.89 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 49.67 | 83.82 | 101.72 | 161.69 | 166.75 | 124.68 | 129.60 | 134.71 | 140.02 | 145.54 |
| EBIT | 35.68 | 74.42 | 92.58 | 146.91 | 149.99 | 110.29 | 114.64 | 119.16 | 123.86 | 128.74 |
| Tax Rate | 187.99% | 25.78% | 24.77% | 15.37% | 26.46% | 56.07% | 56.07% | 56.07% | 56.07% | 56.07% |
| EBIAT | -31.39 | 55.23 | 69.65 | 124.33 | 110.30 | 48.44 | 50.35 | 52.34 | 54.40 | 56.55 |
| Depreciation | 13.99 | 9.39 | 9.15 | 14.79 | 16.77 | 14.39 | 14.96 | 15.55 | 16.16 | 16.80 |
| Accounts Receivable | - | -11.28 | -25.08 | 8.84 | 2.83 | -0.09 | -1.77 | -1.84 | -1.91 | -1.98 |
| Inventories | - | 0.35 | 0.19 | -0.02 | -0.31 | 0 | -0.04 | -0.04 | -0.04 | -0.04 |
| Accounts Payable | - | 0.68 | 2.34 | 1.73 | -2.42 | 1.18 | 0.47 | 0.49 | 0.51 | 0.53 |
| Capital Expenditure | -6.33 | -6.73 | -5.17 | -9.77 | -10.45 | -8.61 | -8.95 | -9.30 | -9.67 | -10.05 |
| UFCF | -23.74 | 47.64 | 51.06 | 139.90 | 116.72 | 55.32 | 55.04 | 57.21 | 59.47 | 61.81 |
| WACC | ||||||||||
| PV UFCF | 50.89 | 46.58 | 44.54 | 42.59 | 40.73 | |||||
| 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 |