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STRA

Strategic Education Inc – Colleges, Universities, and Professional Schools
Strategic Education, Inc. is dedicated to helping advance economic mobility through higher education. The Company serves working adult students all over the globe through its core focus areas: 1) U.S. Higher Education, through Strayer University and Capella University, each institutionally accredited, and collectively offer flexible and affordable associate, bachelor's, master's and doctoral programs including the Jack Welch Management Institute at Strayer University; 2) Alternative Learning, encompassing Sophia Learning, self-paced general education courses that are ACE-recommended for college credit; Workforce Edge, a full service, online employee education management portal; Digital Enablement Partnerships, helping advance capabilities in course development, online delivery and student support; and non-degree web and mobile application development courses through Hackbright Academy and Strayer University's DevMountain; and 3) Australia/New Zealand, comprised of Torrens University, Think Education and Media Design School operations in Australia and New Zealand. This portfolio of high quality, innovative, relevant, and affordable programs and institutions helps students prepare for success in today's workforce and find a path to bettering their lives.
Analysis Results
Intrinsic Value $277.18
Latest Price $79.51
Relative Value 71% 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 22.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.0%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 22.8%, 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)
2022 181 169
2023 222 194
2024 273 223
2025 336 256
2026 412 294
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 8450 million. This corresponds to a present value of 5640 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 1140 million. Adding in the terminal value gives a total present value of 6780 million.

There are presently 24.5 million outstanding shares, so the intrinsic value per share is 277.18.

Financial Statements

The following data was to determine the past cash flows.

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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