DCF Tool

NNI

Nelnet Inc – Credit Card Issuing
nelnet is a student loan servicer that’s grown into a fiber internet pioneer, real estate investor, and software provider. but that’s just the beginning. with 4,000 employees and growing, we take our business wherever superior customer experiences and ingenuity is needed. find nelnet in 17 different cities, 3 countries, 24+ businesses, 5 industries, and in your linkedin feed by following our page. we have five core values at nelnet: 1. provide superior customer experiences 2. create an awesome work environment 3. pursue opportunities for diversification and growth 4. communicate openly and honestly 5. give back to the communities in which we live and work
Analysis Results
Intrinsic Value $492.91
Latest Price $89.68
Relative Value 82% 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 6.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 1.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 6.2%, 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 0.854 0.783
2024 0.906 0.763
2025 0.962 0.743
2026 1.02 0.723
2027 1.08 0.705
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 15.8 billion. This corresponds to a present value of 9.42 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.72 billion. Adding in the terminal value gives a total present value of 13.1 billion.

There are presently 26.7 million outstanding shares, so the intrinsic value per share is 492.91.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 18,908,273,000
Current Cash 0
Current Liabilities 15,712,883,000
Current Debt 0
Non-Cash Working Capital (NCWC) 3,195,390,000
Change in NCWC 259,742,000
EBIT 509,465,000
Tax Provision 113,224,000
Depreciation and Amortization 176,248,000
Capital Expenditure -59,421,000
Unlevered Free Cash Flow 772,810,000
Current Assets 21,281,620,000
Current Cash 0
Current Liabilities 18,345,972,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,935,648,000
Change in NCWC 427,728,000
EBIT 502,105,000
Tax Provision 115,822,000
Depreciation and Amortization 132,325,000
Capital Expenditure -58,952,000
Unlevered Free Cash Flow 887,384,000
Current Assets 22,213,451,000
Current Cash 0
Current Liabilities 19,705,531,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,507,920,000
Change in NCWC 534,056,000
EBIT 499,674,000
Tax Provision 100,860,000
Depreciation and Amortization 0
Capital Expenditure -113,312,000
Unlevered Free Cash Flow 808,545,223
Current Assets 22,987,959,000
Current Cash 0
Current Liabilities 21,014,095,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,973,864,000
Change in NCWC 64,512,000
EBIT 176,745,000
Tax Provision 35,451,000
Depreciation and Amortization 192,662,000
Capital Expenditure -92,499,000
Unlevered Free Cash Flow 305,969,000
Current Assets 24,559,449,000
Current Cash 0
Current Liabilities 22,650,097,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,909,352,000
Change in NCWC 27,424,000
EBIT 286,294,000
Tax Provision 58,770,000
Depreciation and Amortization 184,682,000
Capital Expenditure -125,023,000
Unlevered Free Cash Flow 314,607,000
Current Assets 23,482,724,000
Current Cash 0
Current Liabilities 21,600,796,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,881,928,000
Change in NCWC -57,329,000
EBIT 226,684,000
Tax Provision 64,863,000
Depreciation and Amortization 137,823,000
Capital Expenditure -156,005,000
Unlevered Free Cash Flow 86,310,000
Current Assets 26,850,952,000
Current Cash 0
Current Liabilities 24,911,695,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,939,257,000
Change in NCWC 230,081,000
EBIT 398,814,000
Tax Provision 141,313,000
Depreciation and Amortization 122,547,000
Capital Expenditure -67,602,000
Unlevered Free Cash Flow 542,527,000
Current Assets 30,133,017,000
Current Cash 0
Current Liabilities 28,423,841,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,709,176,000
Change in NCWC 193,501,000
EBIT 420,644,000
Tax Provision 152,380,000
Depreciation and Amortization 123,736,000
Capital Expenditure -16,761,000
Unlevered Free Cash Flow 568,740,000
Current Assets 29,720,259,000
Current Cash 0
Current Liabilities 28,204,584,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,515,675,000
Change in NCWC 179,507,000
EBIT 469,519,000
Tax Provision 160,238,000
Depreciation and Amortization 107,969,000
Capital Expenditure -26,488,000
Unlevered Free Cash Flow 570,269,000
Current Assets 27,498,727,000
Current Cash 0
Current Liabilities 26,162,559,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,336,168,000
Change in NCWC 256,640,000
EBIT 465,534,000
Tax Provision 161,193,000
Depreciation and Amortization 79,484,000
Capital Expenditure -17,010,000
Unlevered Free Cash Flow 623,455,000
Current Assets 26,360,539,000
Current Cash 0
Current Liabilities 25,281,011,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,079,528,000
Change in NCWC 107,720,000
EBIT 277,272,000
Tax Provision 96,077,000
Depreciation and Amortization 116,781,000
Capital Expenditure -9,944,000
Unlevered Free Cash Flow 394,783,547

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