Discounted Cash Flow (DCF) Analysis Unlevered

Schnitzer Steel Industries, Inc. (SCHN)

$34.72

+1.32 (+3.95%)
All numbers are in Millions, Currency in USD
Stock DCF: 63.73 | 34.72 | 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 2,364.722,132.781,712.342,758.553,485.823,990.744,568.815,230.615,988.276,855.69
Revenue (%)
EBITDA 197.52135.6262.86266.93296.99291.95334.24382.66438.09501.55
EBITDA (%)
EBIT 147.8482.284.69208.33221.93193.97222.07254.24291.07333.23
EBIT (%)
Depreciation 49.6753.3458.1758.6075.0597.98112.17128.42147.02168.32
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 4.7212.3817.8927.8243.8032.6437.3742.7848.9856.08
Total Cash (%)
Account Receivables 174.09151.48157.40214.94239.35305.81350.10400.82458.88525.35
Account Receivables (%)
Inventories 205.88187.32157.27256.43315.19359.26411.30470.87539.08617.17
Inventories (%)
Accounts Payable 128.49110.30106.68179.92217.69236.27270.49309.68354.53405.89
Accounts Payable (%)
Capital Expenditure -77.63-94.61-82-118.87-150.12-168.60-193.02-220.98-252.99-289.63
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 34.72
Beta 1.450
Diluted Shares Outstanding 29.53
Cost of Debt
Tax Rate 22.10
After-tax Cost of Debt 1.79%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.351
Total Debt 371.87
Total Equity 1,025.25
Total Capital 1,397.12
Debt Weighting 26.62
Equity Weighting 73.38
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 2,364.722,132.781,712.342,758.553,485.823,990.744,568.815,230.615,988.276,855.69
EBITDA 197.52135.6262.86266.93296.99291.95334.24382.66438.09501.55
EBIT 147.8482.284.69208.33221.93193.97222.07254.24291.07333.23
Tax Rate -10.29%26.10%-113.77%20.62%22.10%-11.05%-11.05%-11.05%-11.05%-11.05%
EBIAT 163.0660.8110.03165.38172.90215.41246.61282.33323.23370.05
Depreciation 49.6753.3458.1758.6075.0597.98112.17128.42147.02168.32
Accounts Receivable -22.60-5.92-57.54-24.41-66.46-44.30-50.71-58.06-66.47
Inventories -18.5630.05-99.16-58.76-44.07-52.04-59.58-68.21-78.09
Accounts Payable --18.20-3.6273.2437.7718.5834.2239.1844.8651.35
Capital Expenditure -77.63-94.61-82-118.87-150.12-168.60-193.02-220.98-252.99-289.63
UFCF 135.1042.496.7121.6752.4252.85103.66118.67135.86155.54
WACC
PV UFCF 48.9088.7594.0299.60105.51
SUM PV UFCF 436.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.07
Free cash flow (t + 1) 158.65
Terminal Value 2,613.66
Present Value of Terminal Value 1,773.06

Intrinsic Value

Enterprise Value 2,209.86
Net Debt 328.07
Equity Value 1,881.79
Shares Outstanding 29.53
Equity Value Per Share 63.73