DCF Tool

LRN

k12 inc. is driving innovation and advancing the quality of education by delivering state-of-the-art, digital learning platforms and technology to students and school districts across the globe. we believe that every student is uniquely brilliant and deserves a high-quality education to help them thrive in school and ultimately, be prepared for post-secondary education, going on to a career, and reaching their personal potential. with engaging curriculum developed by master teachers, cognitive scientists, technologists, and interactive designers, k12 serves over 2,000 schools and school districts and has delivered more than four million courses over the past decade. the company is made up of thousands of online school educators providing instruction, academic services, and learning solutions to public schools and districts, traditional classrooms, blended school programs, and directly to families. the k12 program is offered through k12 partner public schools in 33 states and the distri
Analysis Results
Intrinsic Value $660.19
Latest Price $57.57
Relative Value 91% undervalued
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Cash Flow (Billions)
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 33.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 33.7%, 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 (billion) Present value (billion)
2024 0.356 0.34
2025 0.477 0.433
2026 0.637 0.553
2027 0.853 0.705
2028 1.14 0.899
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 34.2 billion. This corresponds to a present value of 25.7 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2.93 billion. Adding in the terminal value gives a total present value of 28.6 billion.

There are presently 43.4 million outstanding shares, so the intrinsic value per share is 660.19.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,065,199,000
Current Cash 410,807,000
Current Liabilities 309,135,000
Current Debt 35,621,000
Non-Cash Working Capital (NCWC) 380,878,000
Change in NCWC 84,426,000
EBIT 165,165,000
Tax Provision 45,346,000
Depreciation and Amortization 110,358,000
Capital Expenditure -66,548,000
Unlevered Free Cash Flow 249,910,833
Current Assets 950,534,000
Current Cash 389,398,000
Current Liabilities 302,073,000
Current Debt 37,389,000
Non-Cash Working Capital (NCWC) 296,452,000
Change in NCWC 103,910,000
EBIT 156,772,000
Tax Provision 40,088,000
Depreciation and Amortization 97,914,000
Capital Expenditure -67,626,000
Unlevered Free Cash Flow 248,280,410
Current Assets 857,530,000
Current Cash 386,080,000
Current Liabilities 306,244,000
Current Debt 27,336,000
Non-Cash Working Capital (NCWC) 192,542,000
Change in NCWC 63,682,000
EBIT 111,140,000
Tax Provision 24,539,000
Depreciation and Amortization 90,077,000
Capital Expenditure -52,263,000
Unlevered Free Cash Flow 184,224,035
Current Assets 501,271,000
Current Cash 212,299,000
Current Liabilities 273,416,000
Current Debt 113,304,000
Non-Cash Working Capital (NCWC) 128,860,000
Change in NCWC 18,324,000
EBIT 32,077,000
Tax Provision 8,541,000
Depreciation and Amortization 72,091,000
Capital Expenditure -44,997,000
Unlevered Free Cash Flow 69,204,696
Current Assets 529,656,000
Current Cash 283,121,000
Current Liabilities 155,587,000
Current Debt 19,588,000
Non-Cash Working Capital (NCWC) 110,536,000
Change in NCWC -14,712,000
EBIT 44,854,000
Tax Provision 10,520,000
Depreciation and Amortization 71,400,000
Capital Expenditure -48,406,000
Unlevered Free Cash Flow 43,249,681
Current Assets 459,232,000
Current Cash 231,113,000
Current Liabilities 116,224,000
Current Debt 13,353,000
Non-Cash Working Capital (NCWC) 125,248,000
Change in NCWC -11,599,000
EBIT 25,545,000
Tax Provision -910,000
Depreciation and Amortization 75,260,000
Capital Expenditure -43,203,000
Unlevered Free Cash Flow 46,003,000
Current Assets 473,582,000
Current Cash 230,864,000
Current Liabilities 117,751,000
Current Debt 11,880,000
Non-Cash Working Capital (NCWC) 136,847,000
Change in NCWC 14,783,000
EBIT 13,129,000
Tax Provision 5,396,000
Depreciation and Amortization 74,280,000
Capital Expenditure -48,224,000
Unlevered Free Cash Flow 48,572,000
Current Assets 445,855,000
Current Cash 213,989,000
Current Liabilities 123,012,000
Current Debt 13,210,000
Non-Cash Working Capital (NCWC) 122,064,000
Change in NCWC -47,025,000
EBIT 13,914,000
Tax Provision 4,746,000
Depreciation and Amortization 68,225,000
Capital Expenditure -62,900,000
Unlevered Free Cash Flow -32,752,221
Current Assets 458,963,000
Current Cash 195,852,000
Current Liabilities 110,657,000
Current Debt 16,635,000
Non-Cash Working Capital (NCWC) 169,089,000
Change in NCWC -6,735,000
EBIT 18,427,000
Tax Provision 5,810,000
Depreciation and Amortization 83,801,000
Capital Expenditure -9,928,000
Unlevered Free Cash Flow 78,491,739
Current Assets 465,201,000
Current Cash 196,109,000
Current Liabilities 113,760,000
Current Debt 20,492,000
Non-Cash Working Capital (NCWC) 175,824,000
Change in NCWC -11,243,000
EBIT 22,856,000
Tax Provision 11,075,000
Depreciation and Amortization 86,267,000
Capital Expenditure -49,369,000
Unlevered Free Cash Flow 39,839,484

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.