DCF Tool

SBAC

SBA Communications Corp – All Other Telecommunications
SBA Communications Corporation is a leading independent owner and operator of wireless communications infrastructure including towers, buildings, rooftops, distributed antenna systems (DAS) and small cells. SBA is part of the S&P 500 and is one of the top Real Estate Investment Trusts (REITs) by market capitalization.
Analysis Results
Intrinsic Value $557.37
Latest Price $223.80
Relative Value 60% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
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 8.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 3.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.5%, 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 1.53 1.48
2024 1.66 1.55
2025 1.8 1.63
2026 1.95 1.71
2027 2.12 1.8
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 63.5 billion. This corresponds to a present value of 52.2 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 8.17 billion. Adding in the terminal value gives a total present value of 60.4 billion.

There are presently 108.0 million outstanding shares, so the intrinsic value per share is 557.37.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 482,733,000
Current Cash 145,039,000
Current Liabilities 696,764,000
Current Debt 26,283,000
Non-Cash Working Capital (NCWC) -332,787,000
Change in NCWC 10,683,000
EBIT 995,375,000
Tax Provision 66,044,000
Depreciation and Amortization 707,576,000
Capital Expenditure -214,443,000
Unlevered Free Cash Flow 1,374,175,460
Current Assets 614,446,000
Current Cash 367,278,000
Current Liabilities 616,331,000
Current Debt 25,693,000
Non-Cash Working Capital (NCWC) -343,470,000
Change in NCWC 81,469,000
EBIT 843,160,000
Tax Provision 14,940,000
Depreciation and Amortization 700,161,000
Capital Expenditure -133,694,000
Unlevered Free Cash Flow 1,441,220,283
Current Assets 472,990,000
Current Cash 308,560,000
Current Liabilities 614,801,000
Current Debt 25,432,000
Non-Cash Working Capital (NCWC) -424,939,000
Change in NCWC -126,048,000
EBIT 690,373,000
Tax Provision -41,796,000
Depreciation and Amortization 721,970,000
Capital Expenditure -128,566,000
Unlevered Free Cash Flow 1,157,729,000
Current Assets 334,271,000
Current Cash 108,309,000
Current Liabilities 1,048,293,000
Current Debt 523,440,000
Non-Cash Working Capital (NCWC) -298,891,000
Change in NCWC -264,550,000
EBIT 631,819,000
Tax Provision 39,605,000
Depreciation and Amortization 697,078,000
Capital Expenditure -154,236,000
Unlevered Free Cash Flow 776,217,664
Current Assets 373,854,000
Current Cash 143,644,000
Current Liabilities 1,206,279,000
Current Debt 941,728,000
Non-Cash Working Capital (NCWC) -34,341,000
Change in NCWC 34,014,000
EBIT 571,300,000
Tax Provision 4,233,000
Depreciation and Amortization 672,113,000
Capital Expenditure -149,812,000
Unlevered Free Cash Flow 1,080,824,641
Current Assets 259,533,000
Current Cash 68,983,000
Current Liabilities 278,905,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) -68,355,000
Change in NCWC -304,000
EBIT 490,751,000
Tax Provision 13,237,000
Depreciation and Amortization 643,100,000
Capital Expenditure -147,044,000
Unlevered Free Cash Flow 930,929,251
Current Assets 324,571,000
Current Cash 146,332,000
Current Liabilities 873,447,000
Current Debt 627,157,000
Non-Cash Working Capital (NCWC) -68,051,000
Change in NCWC 10,105,000
EBIT 430,690,000
Tax Provision 11,065,000
Depreciation and Amortization 638,189,000
Capital Expenditure -139,982,000
Unlevered Free Cash Flow 884,415,275
Current Assets 293,960,000
Current Cash 118,745,000
Current Liabilities 273,371,000
Current Debt 20,000,000
Non-Cash Working Capital (NCWC) -78,156,000
Change in NCWC -61,502,000
EBIT 419,103,000
Tax Provision 9,061,000
Depreciation and Amortization 660,021,000
Capital Expenditure -208,707,000
Unlevered Free Cash Flow 808,915,000
Current Assets 326,888,000
Current Cash 44,992,000
Current Liabilities 331,050,000
Current Debt 32,500,000
Non-Cash Working Capital (NCWC) -16,654,000
Change in NCWC 33,039,000
EBIT 368,122,000
Tax Provision 8,635,000
Depreciation and Amortization 627,072,000
Capital Expenditure -211,251,000
Unlevered Free Cash Flow 816,982,000
Current Assets 343,652,000
Current Cash 127,558,000
Current Liabilities 747,673,000
Current Debt 481,886,000
Non-Cash Working Capital (NCWC) -49,693,000
Change in NCWC 208,651,000
EBIT 258,605,000
Tax Provision -1,309,000
Depreciation and Amortization 533,334,000
Capital Expenditure -168,893,000
Unlevered Free Cash Flow 831,697,000
Current Assets 368,563,000
Current Cash 238,570,000
Current Liabilities 863,688,000
Current Debt 475,351,000
Non-Cash Working Capital (NCWC) -258,344,000
Change in NCWC -212,730,000
EBIT 153,529,000
Tax Provision 6,594,000
Depreciation and Amortization 408,467,000
Capital Expenditure -113,265,000
Unlevered Free Cash Flow 236,001,000

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.