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Stride Inc – Elementary and Secondary Schools
Stride, Inc. is reimagining learning - where learning is lifelong, deeply personal, and prepares learners for tomorrow. The company has transformed the teaching and learning experience for millions of people by providing innovative, high-quality, tech-enabled education solutions, curriculum, and programs directly to students, schools, the military, and enterprises in primary, secondary, and post-secondary settings. Stride is a premier provider of K-12 education for students, schools, and districts, including career learning services through middle and high school curriculum. For adult learners, Stride delivers professional skills training in healthcare and technology, as well as staffing and talent development for Fortune 500 companies. Stride has delivered millions of courses over the past decade and serves learners in all 50 states and more than 100 countries. The company is a proud sponsor of the Future of School, a nonprofit organization dedicated to closing the gap between the pace of technology and the pace of change in education.
Analysis Results
Intrinsic Value $1,050.10
Latest Price $42.03
Relative Value 96% 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 55.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 55.7%, 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)
2023 0.39 0.368
2024 0.607 0.54
2025 0.945 0.792
2026 1.47 1.16
2027 2.29 1.71
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 57.5 billion. This corresponds to a present value of 40.3 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 4.57 billion. Adding in the terminal value gives a total present value of 44.9 billion.

There are presently 42.8 million outstanding shares, so the intrinsic value per share is 1050.1.

Financial Statements

The following data was to determine the past cash flows.

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

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