Discounted Cash Flow

Strategic Education, Inc.

STRA · Based on 10 years of SEC filings

Average annual growth rates

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Average annual growth is the mean year-over-year change across each period.

Endpoint CAGR (better for long term trend)

Metric 10-Year 5-Year 3-Year
Sales
Free Cash Flow
Average (FCF & NI)
Net Income

Endpoint CAGR is the compound annual rate from the first to last year in each period.

Projections use average year-over-year growth. Change this in Settings.

Projected growth rate

Free cash flow growth
10-year: — 5-year: — 3-year: —
Averaged growth (FCF & NI)
10-year: — 5-year: — 3-year: —
Net income growth
10-year: — 5-year: — 3-year: —
Sales growth (not added to calculations)
10-year: — 5-year: — 3-year: —

Click a greyed-out slider to switch metrics. Slide between the 10-year, 5-year, and 3-year historic growth rates for FCF, net income, or their average.

%
%

Historical inputs (10 fiscal years)

YEAR Sales Net Income Free Cash Flow Net Margin EPS (diluted)
2016 $441.1m $34.8m $31.3m 7.9% $3.28
2017 $454.9m (3.1%) $20.6m (-40.8%) $38.1m (21.5%) 4.5% (-42.6%) $1.93 (-41.2%)
2018 $634.2m (39.4%) $-15.7m (-176.0%) $19.3m (-49.3%) -2.5% (-154.5%) $-1.03 (-153.4%)
2019 $997.1m (57.2%) $81.1m (617.8%) $163.5m (746.1%) 8.1% (429.3%) $3.73 (462.1%)
2020 $1.0b (3.1%) $86.3m (6.3%) $96.1m (-41.2%) 8.4% (3.2%) $3.81 (2.1%)
2021 $1.1b (10.1%) $55.1m (-36.1%) $131.1m (36.4%) 4.9% (-42.0%) $2.30 (-39.6%)
2022 $1.1b (-5.9%) $46.7m (-15.3%) $82.9m (-36.8%) 4.4% (-10.0%) $1.97 (-14.3%)
2023 $1.1b (6.3%) $69.8m (49.5%) $80.2m (-3.3%) 6.2% (40.6%) $2.98 (51.3%)
2024 $1.2b (7.7%) $112.7m (61.5%) $128.8m (60.6%) 9.2% (49.9%) $4.81 (61.4%)
2025 $1.3b (4.0%) $126.6m (12.4%) $153.9m (19.6%) 10.0% (8.1%) $5.57 (15.8%)

Base FCF: (latest fiscal year)

Discount rate: %

Terminal growth:

Projection period: years

Alt A decline yrs:

Alt B total yrs:

Projected cash flows

Year Projected cash flow Discount Factor Present Value

PV of projected FCF:

Terminal FCF:

Terminal value:

PV of terminal value:

Enterprise value (DCF):

DCF price per share:

Current price:

Alternative DCF Models

Model Fair Value Upside PV(FCFs) PV(Terminal) Total Years
Standard (10yr→TV) 10 + TV
Alt A (Gradual Decline)
Alt B (30yr Hard Stop) N/A

This is a simplified DCF model for illustration. It uses reported free cash flow, a single growth assumption, fixed WACC, and a Gordon Growth terminal value. It is not investment advice.

+ 10YR Financials Balance Sheet (10YR) Cash Flow (10YR) DCF Model