Discounted Cash Flow (DCF) Analysis Unlevered

SLM Corporation (SLMBP)

$55.85

+0.70 (+1.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 95.06 | 55.85 | 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 1,126.321,361.171,672.241,800.112,0302,355.422,7333,171.113,679.464,269.29
Revenue (%)
EBITDA 811.191,095.451,466.131,710.741,938.382,028.942,354.182,731.573,169.453,677.53
EBITDA (%)
EBIT 799.551,081.621,451.461,695.671,922.342,007.482,329.292,702.693,135.943,638.65
EBIT (%)
Depreciation 11.6413.8314.6715.0716.0421.4524.8928.8833.5138.88
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 1,778.432,735.356,051.556,468.856,852.566,678.357,748.928,991.1110,432.4312,104.79
Total Cash (%)
Account Receivables 1,135.491,272.761,509.131,780.501,453.292,143.742,487.392,886.143,348.803,885.62
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 55.85
Beta 1.182
Diluted Shares Outstanding 308.15
Cost of Debt
Tax Rate 24.65
After-tax Cost of Debt 4.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.382
Total Debt 5,930.99
Total Equity 17,210.38
Total Capital 23,141.37
Debt Weighting 25.63
Equity Weighting 74.37
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 1,126.321,361.171,672.241,800.112,0302,355.422,7333,171.113,679.464,269.29
EBITDA 811.191,095.451,466.131,710.741,938.382,028.942,354.182,731.573,169.453,677.53
EBIT 799.551,081.621,451.461,695.671,922.342,007.482,329.292,702.693,135.943,638.65
Tax Rate 41.21%12.85%22.25%23.68%24.65%24.93%24.93%24.93%24.93%24.93%
EBIAT 470.06942.671,128.541,294.071,448.391,507.051,748.642,028.952,354.202,731.59
Depreciation 11.6413.8314.6715.0716.0421.4524.8928.8833.5138.88
Accounts Receivable --137.26-236.37-271.38327.21-690.45-343.65-398.74-462.66-536.83
Inventories ----------
Accounts Payable ----------
Capital Expenditure ----------
UFCF -----838.051,429.871,659.091,925.052,233.64
WACC
PV UFCF 774.391,220.911,309.021,403.501,504.79
SUM PV UFCF 6,212.62

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.22
Free cash flow (t + 1) 2,278.32
Terminal Value 36,628.89
Present Value of Terminal Value 24,676.64

Intrinsic Value

Enterprise Value 30,889.26
Net Debt 1,596.39
Equity Value 29,292.87
Shares Outstanding 308.15
Equity Value Per Share 95.06