Discounted Cash Flow (DCF) Analysis Unlevered

SLM Corporation (SLM)

$16.26

+0.59 (+3.77%)
All numbers are in Millions, Currency in USD
Stock DCF: 98.44 | 16.26 | 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 1,126.321,361.171,672.241,811.442,0302,355.282,732.673,170.543,678.584,268.01
Revenue (%)
EBITDA 811.191,095.451,466.131,710.741,938.392,026.012,350.652,727.313,164.323,671.36
EBITDA (%)
EBIT 799.551,081.621,451.461,695.671,922.342,004.592,325.792,698.473,130.863,632.53
EBIT (%)
Depreciation 11.6413.8314.6715.0716.0421.4324.8628.8433.4638.83
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 1,778.432,735.356,051.556,468.856,852.566,667.367,735.718,975.2410,413.3912,081.98
Total Cash (%)
Account Receivables 1,135.491,272.761,509.131,780.501,453.292,140.702,483.712,881.693,343.443,879.18
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 16.26
Beta 1.208
Diluted Shares Outstanding 387.19
Cost of Debt
Tax Rate 24.65
After-tax Cost of Debt 4.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.826
Total Debt 5,930.99
Total Equity 6,295.79
Total Capital 12,226.78
Debt Weighting 48.51
Equity Weighting 51.49
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 1,126.321,361.171,672.241,811.442,0302,355.282,732.673,170.543,678.584,268.01
EBITDA 811.191,095.451,466.131,710.741,938.392,026.012,350.652,727.313,164.323,671.36
EBIT 799.551,081.621,451.461,695.671,922.342,004.592,325.792,698.473,130.863,632.53
Tax Rate 41.21%12.85%22.25%23.68%24.65%24.93%24.93%24.93%24.93%24.93%
EBIAT 470.06942.671,128.541,294.071,448.391,504.871,746.012,025.782,350.382,726.99
Depreciation 11.6413.8314.6715.0716.0421.4324.8628.8433.4638.83
Accounts Receivable --137.26-236.37-271.38327.21-687.41-343.02-397.98-461.75-535.74
Inventories ----------
Accounts Payable ----------
Capital Expenditure ----------
UFCF -----838.891,427.851,656.641,922.102,230.08
WACC
PV UFCF 784.751,249.481,356.111,471.851,597.47
SUM PV UFCF 6,459.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.90
Free cash flow (t + 1) 2,274.69
Terminal Value 46,422.16
Present Value of Terminal Value 33,253.46

Intrinsic Value

Enterprise Value 39,713.12
Net Debt 1,596.39
Equity Value 38,116.73
Shares Outstanding 387.19
Equity Value Per Share 98.44