DCF Tool

SAIC

Science Applications International Corp. – Computer Systems Design Services
SAIC® is a premier Fortune 500® technology integrator driving its nation's digital transformation. Its robust portfolio of offerings across the defense, space, civilian, and intelligence markets includes secure high-end solutions in engineering, IT modernization, and mission solutions. Using its expertise and understanding of existing and emerging technologies, the Comapny integrates the best components from its own portfolio and its partner ecosystem to deliver innovative, effective, and efficient solutions that are critical to achieving its customers' missions.
Analysis Results
Intrinsic Value $584.64
Latest Price $93.97
Relative Value 84% 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 19.2%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 5.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 19.2%, 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 0.641 0.609
2024 0.764 0.69
2025 0.91 0.781
2026 1.09 0.885
2027 1.29 1.0
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 38.8 billion. This corresponds to a present value of 28.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 3.97 billion. Adding in the terminal value gives a total present value of 32.6 billion.

There are presently 55.7 million outstanding shares, so the intrinsic value per share is 584.64.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,263,000,000
Current Cash 106,000,000
Current Liabilities 1,352,000,000
Current Debt 148,000,000
Non-Cash Working Capital (NCWC) -47,000,000
Change in NCWC 42,000,000
EBIT 518,000,000
Tax Provision 79,000,000
Depreciation and Amortization 165,000,000
Capital Expenditure -36,000,000
Unlevered Free Cash Flow 574,692,737
Current Assets 1,289,000,000
Current Cash 171,000,000
Current Liabilities 1,275,000,000
Current Debt 68,000,000
Non-Cash Working Capital (NCWC) -89,000,000
Change in NCWC -273,000,000
EBIT 444,000,000
Tax Provision 60,000,000
Depreciation and Amortization 179,000,000
Capital Expenditure -46,000,000
Unlevered Free Cash Flow 205,697,416
Current Assets 1,430,000,000
Current Cash 188,000,000
Current Liabilities 1,128,000,000
Current Debt 70,000,000
Non-Cash Working Capital (NCWC) 184,000,000
Change in NCWC -139,000,000
EBIT 418,000,000
Tax Provision 57,000,000
Depreciation and Amortization 138,000,000
Capital Expenditure -21,000,000
Unlevered Free Cash Flow 312,692,307
Current Assets 1,433,000,000
Current Cash 237,000,000
Current Liabilities 897,000,000
Current Debt 24,000,000
Non-Cash Working Capital (NCWC) 323,000,000
Change in NCWC 171,000,000
EBIT 306,000,000
Tax Provision 33,000,000
Depreciation and Amortization 49,000,000
Capital Expenditure -28,000,000
Unlevered Free Cash Flow 438,600,000
Current Assets 950,000,000
Current Cash 144,000,000
Current Liabilities 695,000,000
Current Debt 41,000,000
Non-Cash Working Capital (NCWC) 152,000,000
Change in NCWC 51,000,000
EBIT 256,000,000
Tax Provision 35,000,000
Depreciation and Amortization 46,000,000
Capital Expenditure -22,000,000
Unlevered Free Cash Flow 289,130,841
Current Assets 901,000,000
Current Cash 210,000,000
Current Liabilities 615,000,000
Current Debt 25,000,000
Non-Cash Working Capital (NCWC) 101,000,000
Change in NCWC -25,000,000
EBIT 281,000,000
Tax Provision 72,000,000
Depreciation and Amortization 53,000,000
Capital Expenditure -17,000,000
Unlevered Free Cash Flow 200,036,363
Current Assets 952,000,000
Current Cash 195,000,000
Current Liabilities 688,000,000
Current Debt 57,000,000
Non-Cash Working Capital (NCWC) 126,000,000
Change in NCWC 29,000,000
EBIT 253,000,000
Tax Provision 66,000,000
Depreciation and Amortization 62,000,000
Capital Expenditure -20,000,000
Unlevered Free Cash Flow 232,754,098
Current Assets 943,000,000
Current Cash 301,000,000
Current Liabilities 577,000,000
Current Debt 32,000,000
Non-Cash Working Capital (NCWC) 97,000,000
Change in NCWC -92,000,000
EBIT 240,000,000
Tax Provision 82,000,000
Depreciation and Amortization 21,000,000
Capital Expenditure -22,000,000
Unlevered Free Cash Flow 58,748,878
Current Assets 994,000,000
Current Cash 254,000,000
Current Liabilities 564,000,000
Current Debt 13,000,000
Non-Cash Working Capital (NCWC) 189,000,000
Change in NCWC 17,000,000
EBIT 241,000,000
Tax Provision 63,000,000
Depreciation and Amortization 13,000,000
Capital Expenditure -16,000,000
Unlevered Free Cash Flow 168,732,954

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