What is Centrus Energy Corp worth?
With the base-case assumptions below, a discounted cash flow model on Centrus Energy Corp's reported free cash flow gives $79.22 per share.
Inputs from the filings
Three sets of assumptions
| Case | Growth yrs 1-5 | Discount rate | Value per share | Value vs price |
|---|---|---|---|---|
| Bear | 7.5% | 10.0% | $62.27 | - |
| Base | 12.5% | 9.0% | $79.22 | - |
| Bull | 17.5% | 8.0% | $113.00 | - |
Sensitivity: base case value per share
| 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | |
|---|---|---|---|---|---|
| 7.0% | $92.19 | $96.21 | $101.12 | $107.26 | $115.16 |
| 8.0% | $82.47 | $85.07 | $88.15 | $91.85 | $96.37 |
| 9.0% | $75.38 | $77.16 | $79.22 | $81.62 | $84.46 |
| 10.0% | $70.00 | $71.27 | $72.71 | $74.35 | $76.24 |
| 11.0% | $65.79 | $66.72 | $67.76 | $68.92 | $70.25 |
Where the presets come from
Base: years 1 to 5 grow at Centrus Energy Corp's revenue growth rate over the last 5 fiscal years (12.7% a year), held between -5% and 15%. Years 6 to 10 grow halfway between that and the long-run rate of 2.5%. Future cash is discounted at 9% a year.
Bear: 5 points less growth, 2% long-run growth, 10% discount rate. Bull: 5 points more growth (at most 25%), 3% long-run growth, 8% discount rate.
Value per share = (present value of 10 years of free cash flow + present value of everything after + cash - debt) / diluted shares.
This is a model run on assumptions, not a recommendation or a price target. Small changes in the discount rate or growth move the result a lot, as the table above shows. Change them yourself in the calculator.
Adjust the assumptions
Move the sliders for growth, long-run growth and discount rate, or switch to average free cash flow, and see the value per share change.
Adjust the assumptions