Discounted Cash Flow (DCF) Analysis Unlevered

Strategic Education, Inc. (STRA)

$97.8

+1.73 (+1.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 366.42 | 97.8 | 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 454.85634.18997.141,027.651,131.691,442.451,838.562,343.432,986.953,807.18
Revenue (%)
EBITDA 72.0235.40228.59223.11180.01236.44301.37384.13489.61624.06
EBITDA (%)
EBIT 53.29-19.14123.72113.9676.60112.40143.27182.62232.76296.68
EBIT (%)
Depreciation 18.7354.54104.86109.15103.42124.04158.10201.51256.85327.38
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 155.93348.85454.57195.07275.42514.08655.25835.181,064.531,356.85
Total Cash (%)
Account Receivables 23.1255.6951.5251.6051.5982.54105.21134.10170.93217.86
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 46.1885.9847.5064.0545.34111.68142.35181.44231.26294.77
Accounts Payable (%)
Capital Expenditure -18.05-27.55-38.69-46.81-49.43-60.92-77.64-98.97-126.14-160.78
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 97.8
Beta 0.533
Diluted Shares Outstanding 24.12
Cost of Debt
Tax Rate 28.08
After-tax Cost of Debt 3.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.048
Total Debt 331.46
Total Equity 2,359.13
Total Capital 2,690.59
Debt Weighting 12.32
Equity Weighting 87.68
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 454.85634.18997.141,027.651,131.691,442.451,838.562,343.432,986.953,807.18
EBITDA 72.0235.40228.59223.11180.01236.44301.37384.13489.61624.06
EBIT 53.29-19.14123.72113.9676.60112.40143.27182.62232.76296.68
Tax Rate 60.85%18.12%34.42%24.30%28.08%33.15%33.15%33.15%33.15%33.15%
EBIAT 20.86-15.6781.1486.2755.0975.1495.77122.07155.59198.32
Depreciation 18.7354.54104.86109.15103.42124.04158.10201.51256.85327.38
Accounts Receivable --32.574.17-0.080.01-30.95-22.67-28.89-36.82-46.94
Inventories ----------
Accounts Payable -39.80-38.4816.55-18.7166.3430.6739.0949.8263.51
Capital Expenditure -18.05-27.55-38.69-46.81-49.43-60.92-77.64-98.97-126.14-160.78
UFCF 21.5518.55113.01165.0890.37173.65184.23234.82299.30381.49
WACC
PV UFCF 164.21164.74198.56239.32288.45
SUM PV UFCF 1,055.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.75
Free cash flow (t + 1) 389.12
Terminal Value 10,376.43
Present Value of Terminal Value 7,845.96

Intrinsic Value

Enterprise Value 8,901.24
Net Debt 62.54
Equity Value 8,838.70
Shares Outstanding 24.12
Equity Value Per Share 366.42