DCF Tool

LOPE

Grand Canyon Education Inc – Colleges, Universities, and Professional Schools
since 1949, grand canyon university has been a premier private university in arizona, helping students find their purpose and achieve their potential through landing the career of their dreams, advancing their career, and changing careers. as a christian university, gcu also encourages students to find their purpose in christ, with an emphasis on applying christian values and ethics to the workplace.
Analysis Results
Intrinsic Value $170.00
Latest Price $115.41
Relative Value 32% undervalued
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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 7.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 7.8%, 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)
2023 225 210
2024 243 212
2025 262 213
2026 282 215
2027 304 216
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 6140 million. This corresponds to a present value of 4080 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1070 million. Adding in the terminal value gives a total present value of 5150 million.

There are presently 30.3 million outstanding shares, so the intrinsic value per share is 170.0.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 273,273,000
Current Cash 181,704,000
Current Liabilities 99,706,000
Current Debt 0
Non-Cash Working Capital (NCWC) -8,137,000
Change in NCWC 9,703,000
EBIT 237,500,000
Tax Provision 55,444,000
Depreciation and Amortization 31,177,000
Capital Expenditure -35,629,000
Unlevered Free Cash Flow 187,911,732
Current Assets 681,045,000
Current Cash 600,941,000
Current Liabilities 97,944,000
Current Debt 0
Non-Cash Working Capital (NCWC) -17,840,000
Change in NCWC -9,399,000
EBIT 282,190,000
Tax Provision 70,945,000
Depreciation and Amortization 30,413,000
Capital Expenditure -29,390,000
Unlevered Free Cash Flow 213,383,470
Current Assets 333,742,000
Current Cash 256,609,000
Current Liabilities 118,718,000
Current Debt 33,144,000
Non-Cash Working Capital (NCWC) -8,441,000
Change in NCWC -10,826,000
EBIT 277,437,000
Tax Provision 75,944,000
Depreciation and Amortization 29,652,000
Capital Expenditure -29,418,000
Unlevered Free Cash Flow 203,599,290
Current Assets 208,344,000
Current Cash 143,873,000
Current Liabilities 95,230,000
Current Debt 33,144,000
Non-Cash Working Capital (NCWC) 2,385,000
Change in NCWC -73,683,000
EBIT 269,097,000
Tax Provision 58,327,000
Depreciation and Amortization 18,696,000
Capital Expenditure -22,391,000
Unlevered Free Cash Flow 142,284,285
Current Assets 309,466,000
Current Cash 189,348,000
Current Liabilities 80,518,000
Current Debt 36,468,000
Non-Cash Working Capital (NCWC) 76,068,000
Change in NCWC 175,395,000
EBIT 276,519,000
Tax Provision 57,989,000
Depreciation and Amortization 35,673,000
Capital Expenditure -124,853,000
Unlevered Free Cash Flow 306,862,709
Current Assets 374,862,000
Current Cash 242,745,000
Current Liabilities 238,135,000
Current Debt 6,691,000
Non-Cash Working Capital (NCWC) -99,327,000
Change in NCWC -25,665,000
EBIT 282,754,000
Tax Provision 80,209,000
Depreciation and Amortization 54,228,000
Capital Expenditure -123,954,000
Unlevered Free Cash Flow 107,372,961
Current Assets 230,068,000
Current Cash 108,572,000
Current Liabilities 226,794,000
Current Debt 31,636,000
Non-Cash Working Capital (NCWC) -73,662,000
Change in NCWC -7,395,000
EBIT 240,726,000
Tax Provision 87,610,000
Depreciation and Amortization 45,683,000
Capital Expenditure -239,019,000
Unlevered Free Cash Flow -49,322,497
Current Assets 221,345,000
Current Cash 106,400,000
Current Liabilities 188,534,000
Current Debt 7,322,000
Non-Cash Working Capital (NCWC) -66,267,000
Change in NCWC 4,714,000
EBIT 210,361,000
Tax Provision 77,596,000
Depreciation and Amortization 35,675,000
Capital Expenditure -204,718,000
Unlevered Free Cash Flow -32,066,686
Current Assets 267,045,000
Current Cash 166,022,000
Current Liabilities 178,711,000
Current Debt 6,707,000
Non-Cash Working Capital (NCWC) -70,981,000
Change in NCWC -11,513,000
EBIT 180,815,000
Tax Provision 68,232,000
Depreciation and Amortization 29,473,000
Capital Expenditure -168,646,000
Unlevered Free Cash Flow -38,527,129
Current Assets 263,703,000
Current Cash 164,244,000
Current Liabilities 165,623,000
Current Debt 6,696,000
Non-Cash Working Capital (NCWC) -59,468,000
Change in NCWC -22,492,000
EBIT 143,276,000
Tax Provision 56,184,000
Depreciation and Amortization 25,437,000
Capital Expenditure -93,490,000
Unlevered Free Cash Flow -2,825,221
Current Assets 214,174,000
Current Cash 105,111,000
Current Liabilities 152,727,000
Current Debt 6,688,000
Non-Cash Working Capital (NCWC) -36,976,000
Change in NCWC -11,905,000
EBIT 114,052,000
Tax Provision 43,977,000
Depreciation and Amortization 21,923,000
Capital Expenditure -104,876,000
Unlevered Free Cash Flow -25,026,489

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