DCF Tool

STRA

Strategic Education Inc – Colleges, Universities, and Professional Schools
strategic education inc. (nasdaq: stra) is dedicated to enabling economic mobility with education. through a suite of innovative programs and services, we help our working adult students advance their careers and improve their lives. our various learning pathways, include:- strayer university- capella university- jack welch management institute- hackbright academy- devmountain- new york code + design academy- sophia- degrees@work- generation codewith a focus on improving college affordability, student engagement and workforce readiness, we are supporting the growing majority of non-traditional students and ensuring that our graduates have the skills required to succeed in today’s jobs.
Analysis Results
Intrinsic Value $111.03
Latest Price $75.65
Relative Value 32% undervalued
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Cash Flow (Millions)
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 8.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.2%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 8.8%, 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 (million) Present value (million)
2023 94.7 89.1
2024 103 91.3
2025 112 93.6
2026 122 95.9
2027 133 98.2
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 3220 million. This corresponds to a present value of 2250 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 468 million. Adding in the terminal value gives a total present value of 2720 million.

There are presently 24.5 million outstanding shares, so the intrinsic value per share is 111.03.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 329,061,000
Current Cash 222,823,000
Current Liabilities 209,944,000
Current Debt 0
Non-Cash Working Capital (NCWC) -103,706,000
Change in NCWC -318,000
EBIT 73,992,000
Tax Provision 22,899,000
Depreciation and Amortization 63,124,000
Capital Expenditure -43,170,000
Unlevered Free Cash Flow 69,273,146
Current Assets 367,786,000
Current Cash 275,419,000
Current Liabilities 195,755,000
Current Debt 0
Non-Cash Working Capital (NCWC) -103,388,000
Change in NCWC 5,608,000
EBIT 110,585,000
Tax Provision 21,512,000
Depreciation and Amortization 103,416,000
Capital Expenditure -49,433,000
Unlevered Free Cash Flow 139,119,399
Current Assets 286,122,000
Current Cash 195,066,000
Current Liabilities 200,052,000
Current Debt 0
Non-Cash Working Capital (NCWC) -108,996,000
Change in NCWC -21,775,000
EBIT 135,536,000
Tax Provision 27,689,000
Depreciation and Amortization 109,154,000
Capital Expenditure -46,812,000
Unlevered Free Cash Flow 143,170,786
Current Assets 524,094,000
Current Cash 454,567,000
Current Liabilities 156,748,000
Current Debt 0
Non-Cash Working Capital (NCWC) -87,221,000
Change in NCWC -33,598,000
EBIT 132,455,000
Tax Provision 42,586,000
Depreciation and Amortization 104,861,000
Capital Expenditure -38,689,000
Unlevered Free Cash Flow 119,437,775
Current Assets 420,361,000
Current Cash 348,853,000
Current Liabilities 125,131,000
Current Debt 0
Non-Cash Working Capital (NCWC) -53,623,000
Change in NCWC -18,972,000
EBIT 42,914,000
Tax Provision -3,468,000
Depreciation and Amortization 54,543,000
Capital Expenditure -27,547,000
Unlevered Free Cash Flow 50,938,000
Current Assets 190,348,000
Current Cash 155,933,000
Current Liabilities 69,066,000
Current Debt 0
Non-Cash Working Capital (NCWC) -34,651,000
Change in NCWC -6,110,000
EBIT 52,209,000
Tax Provision 32,034,000
Depreciation and Amortization 18,733,000
Capital Expenditure -18,051,000
Unlevered Free Cash Flow 15,012,905
Current Assets 160,543,000
Current Cash 129,245,000
Current Liabilities 59,839,000
Current Debt 0
Non-Cash Working Capital (NCWC) -28,541,000
Change in NCWC -2,859,000
EBIT 57,472,000
Tax Provision 22,490,000
Depreciation and Amortization 17,817,000
Capital Expenditure -13,161,000
Unlevered Free Cash Flow 36,708,340
Current Assets 138,798,000
Current Cash 106,889,000
Current Liabilities 57,591,000
Current Debt 0
Non-Cash Working Capital (NCWC) -25,682,000
Change in NCWC -9,965,000
EBIT 69,698,000
Tax Provision 26,108,000
Depreciation and Amortization 18,104,000
Capital Expenditure -12,692,000
Unlevered Free Cash Flow 37,628,776
Current Assets 196,651,000
Current Cash 162,283,000
Current Liabilities 56,335,000
Current Debt 6,250,000
Non-Cash Working Capital (NCWC) -15,717,000
Change in NCWC -6,264,000
EBIT 81,747,000
Tax Provision 30,260,000
Depreciation and Amortization 20,630,000
Capital Expenditure -6,902,000
Unlevered Free Cash Flow 56,924,477
Current Assets 127,340,000
Current Cash 94,760,000
Current Liabilities 45,158,000
Current Debt 3,125,000
Non-Cash Working Capital (NCWC) -9,453,000
Change in NCWC -11,692,000
EBIT 32,701,000
Tax Provision 10,859,000
Depreciation and Amortization 35,563,000
Capital Expenditure -8,726,000
Unlevered Free Cash Flow 34,831,040
Current Assets 89,655,000
Current Cash 47,517,000
Current Liabilities 43,024,000
Current Debt 3,125,000
Non-Cash Working Capital (NCWC) 2,239,000
Change in NCWC 14,392,000
EBIT 113,587,000
Tax Provision 43,045,000
Depreciation and Amortization 23,973,000
Capital Expenditure -24,733,000
Unlevered Free Cash Flow 82,352,265

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