Discounted Cash Flow (DCF) Analysis Unlevered
SLM Corporation (SLM)
$16.26
+0.59 (+3.77%)
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 | 1,126.32 | 1,361.17 | 1,672.24 | 1,811.44 | 2,030 | 2,355.28 | 2,732.67 | 3,170.54 | 3,678.58 | 4,268.01 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 811.19 | 1,095.45 | 1,466.13 | 1,710.74 | 1,938.39 | 2,026.01 | 2,350.65 | 2,727.31 | 3,164.32 | 3,671.36 |
| EBITDA (%) | ||||||||||
| EBIT | 799.55 | 1,081.62 | 1,451.46 | 1,695.67 | 1,922.34 | 2,004.59 | 2,325.79 | 2,698.47 | 3,130.86 | 3,632.53 |
| EBIT (%) | ||||||||||
| Depreciation | 11.64 | 13.83 | 14.67 | 15.07 | 16.04 | 21.43 | 24.86 | 28.84 | 33.46 | 38.83 |
| 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 | 1,778.43 | 2,735.35 | 6,051.55 | 6,468.85 | 6,852.56 | 6,667.36 | 7,735.71 | 8,975.24 | 10,413.39 | 12,081.98 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 1,135.49 | 1,272.76 | 1,509.13 | 1,780.50 | 1,453.29 | 2,140.70 | 2,483.71 | 2,881.69 | 3,343.44 | 3,879.18 |
| 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 | 1,126.32 | 1,361.17 | 1,672.24 | 1,811.44 | 2,030 | 2,355.28 | 2,732.67 | 3,170.54 | 3,678.58 | 4,268.01 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 811.19 | 1,095.45 | 1,466.13 | 1,710.74 | 1,938.39 | 2,026.01 | 2,350.65 | 2,727.31 | 3,164.32 | 3,671.36 |
| EBIT | 799.55 | 1,081.62 | 1,451.46 | 1,695.67 | 1,922.34 | 2,004.59 | 2,325.79 | 2,698.47 | 3,130.86 | 3,632.53 |
| Tax Rate | 41.21% | 12.85% | 22.25% | 23.68% | 24.65% | 24.93% | 24.93% | 24.93% | 24.93% | 24.93% |
| EBIAT | 470.06 | 942.67 | 1,128.54 | 1,294.07 | 1,448.39 | 1,504.87 | 1,746.01 | 2,025.78 | 2,350.38 | 2,726.99 |
| Depreciation | 11.64 | 13.83 | 14.67 | 15.07 | 16.04 | 21.43 | 24.86 | 28.84 | 33.46 | 38.83 |
| Accounts Receivable | - | -137.26 | -236.37 | -271.38 | 327.21 | -687.41 | -343.02 | -397.98 | -461.75 | -535.74 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| UFCF | - | - | - | - | - | 838.89 | 1,427.85 | 1,656.64 | 1,922.10 | 2,230.08 |
| WACC | ||||||||||
| PV UFCF | 784.75 | 1,249.48 | 1,356.11 | 1,471.85 | 1,597.47 | |||||
| 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 |