Discounted Cash Flow (DCF) Analysis Unlevered
Strategic Education, Inc. (STRA)
$74.59
-3.84 (-4.90%)
All numbers are in Millions, Currency in USD
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 | 634.18 | 997.14 | 1,027.65 | 1,131.69 | 1,065.48 | 1,237.46 | 1,437.20 | 1,669.18 | 1,938.61 | 2,251.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 35.40 | 228.59 | 223.11 | 180.01 | 132.73 | 194.48 | 225.87 | 262.33 | 304.68 | 353.85 |
| EBITDA (%) | ||||||||||
| EBIT | -19.14 | 123.72 | 113.96 | 76.60 | 69.57 | 83.60 | 97.09 | 112.76 | 130.96 | 152.10 |
| EBIT (%) | ||||||||||
| Depreciation | 54.54 | 104.86 | 109.15 | 103.42 | 63.16 | 110.89 | 128.78 | 149.57 | 173.72 | 201.75 |
| 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 | 348.85 | 454.57 | 195.07 | 275.42 | 222.82 | 407.93 | 473.78 | 550.25 | 639.07 | 742.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 55.69 | 51.52 | 51.60 | 51.59 | 62.95 | 72.85 | 84.61 | 98.27 | 114.13 | 132.56 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 85.98 | 47.50 | 64.05 | 45.34 | 90.59 | 91.73 | 106.53 | 123.73 | 143.70 | 166.89 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -27.55 | -38.69 | -46.81 | -49.43 | -43.17 | -52.47 | -60.93 | -70.77 | -82.19 | -95.46 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 74.59 |
|---|---|
| Beta | 0.631 |
| Diluted Shares Outstanding | 24 |
| Cost of Debt | |
| Tax Rate | 32.92 |
| After-tax Cost of Debt | -% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.671 |
| Total Debt | 259.28 |
| Total Equity | 1,790.01 |
| Total Capital | 2,049.29 |
| Debt Weighting | 12.65 |
| Equity Weighting | 87.35 |
| 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 | 634.18 | 997.14 | 1,027.65 | 1,131.69 | 1,065.48 | 1,237.46 | 1,437.20 | 1,669.18 | 1,938.61 | 2,251.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 35.40 | 228.59 | 223.11 | 180.01 | 132.73 | 194.48 | 225.87 | 262.33 | 304.68 | 353.85 |
| EBIT | -19.14 | 123.72 | 113.96 | 76.60 | 69.57 | 83.60 | 97.09 | 112.76 | 130.96 | 152.10 |
| Tax Rate | 18.12% | 34.42% | 24.30% | 28.08% | 32.92% | 27.57% | 27.57% | 27.57% | 27.57% | 27.57% |
| EBIAT | -15.67 | 81.14 | 86.27 | 55.09 | 46.67 | 60.55 | 70.32 | 81.67 | 94.86 | 110.17 |
| Depreciation | 54.54 | 104.86 | 109.15 | 103.42 | 63.16 | 110.89 | 128.78 | 149.57 | 173.72 | 201.75 |
| Accounts Receivable | - | 4.17 | -0.07 | 0.01 | -11.36 | -9.90 | -11.76 | -13.66 | -15.86 | -18.42 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -38.48 | 16.55 | -18.71 | 45.25 | 1.14 | 14.81 | 17.20 | 19.97 | 23.19 |
| Capital Expenditure | -27.55 | -38.69 | -46.81 | -49.43 | -43.17 | -52.47 | -60.93 | -70.77 | -82.19 | -95.46 |
| UFCF | 11.33 | 113.01 | 165.08 | 90.37 | 100.54 | 110.21 | 141.22 | 164.02 | 190.49 | 221.24 |
| WACC | ||||||||||
| PV UFCF | - | - | - | - | - | |||||
| SUM PV UFCF | - |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | - |
| Free cash flow (t + 1) | 225.66 |
| Terminal Value | - |
| Present Value of Terminal Value | - |
Intrinsic Value
| Enterprise Value | - |
|---|---|
| Net Debt | 45.61 |
| Equity Value | - |
| Shares Outstanding | 24 |
| Equity Value Per Share | - |