DCF Tool

LAUR

Laureate Education Inc – Colleges, Universities, and Professional Schools
Laureate Education, Inc. understands the transformative power of education. For more than 20 years, Laureate Education has remained committed to making a positive impact in the communities it serves, by providing accessible, high-quality undergraduate, graduate and specialized degree programs. The Company is one of the world's largest Certified B Corporations® and it's the first Public Benefit Corporation publicly listed on any stock exchange in the world.
Analysis Results
Intrinsic Value $1.22
Latest Price $11.47
Relative Value 839% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of -39.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.7%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -39.7%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 39.3 37.5
2023 23.7 21.6
2024 14.3 12.4
2025 8.6 7.16
2026 5.18 4.12
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 155 million. This corresponds to a present value of 118 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 82.8 million. Adding in the terminal value gives a total present value of 201 million.

There are presently 165.0 million outstanding shares, so the intrinsic value per share is 1.22.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 544,319,000
Current Cash 324,801,000
Current Liabilities 371,928,000
Current Debt 49,082,000
Non-Cash Working Capital (NCWC) -103,328,000
Change in NCWC -88,230,000
EBIT 67,841,000
Tax Provision 145,573,000
Depreciation and Amortization 145,256,000
Capital Expenditure -50,444,000
Unlevered Free Cash Flow 74,423,000
Current Assets 1,443,786,000
Current Cash 750,147,000
Current Liabilities 804,555,000
Current Debt 95,818,000
Non-Cash Working Capital (NCWC) -15,098,000
Change in NCWC 333,586,000
EBIT 22,841,000
Tax Provision -130,069,000
Depreciation and Amortization 223,719,000
Capital Expenditure -74,624,000
Unlevered Free Cash Flow 505,522,000
Current Assets 942,927,000
Current Cash 339,629,000
Current Liabilities 1,070,804,000
Current Debt 118,822,000
Non-Cash Working Capital (NCWC) -348,684,000
Change in NCWC -89,106,000
EBIT 326,809,000
Tax Provision 80,656,000
Depreciation and Amortization 316,029,000
Capital Expenditure -155,641,000
Unlevered Free Cash Flow 119,503,571
Current Assets 1,217,133,000
Current Cash 388,490,000
Current Liabilities 1,190,087,000
Current Debt 101,866,000
Non-Cash Working Capital (NCWC) -259,578,000
Change in NCWC 140,816,000
EBIT 304,090,000
Tax Provision 133,160,000
Depreciation and Amortization 239,998,000
Capital Expenditure -238,046,000
Unlevered Free Cash Flow 313,698,000
Current Assets 1,288,854,000
Current Cash 468,733,000
Current Liabilities 1,374,749,000
Current Debt 154,234,000
Non-Cash Working Capital (NCWC) -400,394,000
Change in NCWC 105,760,000
EBIT 397,536,000
Tax Provision -66,813,000
Depreciation and Amortization 264,742,000
Capital Expenditure -274,063,000
Unlevered Free Cash Flow 493,975,000

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