As of June 8, 2025, Navient Corp has a Discounted Cash Flow (DCF) derived fair value of $0.00 per share. With the current market price at $13.45, this represents a potential upside of -3526.3%.
| Key Metrics | Value |
|---|---|
| DCF Fair Value (5-year) | $0.00 |
| DCF Fair Value (10-year) | $0.00 |
| Potential Upside (5-year) | -3524.7% |
| Potential Upside (10-year) | -3526.3% |
| Discount Rate (WACC) | 3.5% - 18.5% |
Revenue is projected to grow from $807 million in 12-2024 to $695 million by 12-2034, representing a compound annual growth rate of approximately -1.5%.
| Fiscal Year | Revenue (USD millions) | Growth |
|---|---|---|
| 12-2024 | 807 | 32% |
| 12-2025 | 575 | -29% |
| 12-2026 | 580 | 1% |
| 12-2027 | 592 | 2% |
| 12-2028 | 605 | 2% |
| 12-2029 | 617 | 2% |
| 12-2030 | 629 | 2% |
| 12-2031 | 655 | 4% |
| 12-2032 | 668 | 2% |
| 12-2033 | 682 | 2% |
| 12-2034 | 695 | 2% |
Net profit margin is expected to improve from 16% in 12-2024 to 15% by 12-2034, driven by operational efficiency and economies of scale.
| Fiscal Year | Net Profit (USD millions) | Profit Margin |
|---|---|---|
| 12-2024 | 131 | 16% |
| 12-2025 | 94 | 16% |
| 12-2026 | 93 | 16% |
| 12-2027 | 93 | 16% |
| 12-2028 | 94 | 16% |
| 12-2029 | 95 | 15% |
| 12-2030 | 96 | 15% |
| 12-2031 | 100 | 15% |
| 12-2032 | 102 | 15% |
| 12-2033 | 104 | 15% |
| 12-2034 | 105 | 15% |
with a 5-year average of $0 million. Projected CapEx is expected to maintain at approximately 0% of revenue.
Depreciation is based on an average useful life of 5 years for capital assets.
| Fiscal Year | D&A (USD millions) |
|---|---|
| 12-2025 | 0 |
| 12-2026 | 0 |
| 12-2027 | 0 |
| 12-2028 | 0 |
| 12-2029 | 0 |
| 12-2030 | 0 |
Net working capital is expected to increase gradually, with projected changes affecting free cash flow.
| Components | Average Days |
|---|---|
| Days Receivables | 25 |
| Days Inventory | 0 |
| Days Payables | 0 |
| Fiscal Year | EBITDA | Tax | CapEx | Change in NWC | FCF |
|---|---|---|---|---|---|
| 9M/2025 | 54 | 21 | 0 | (8) | 40 |
| 2026 | 71 | 28 | 0 | 2 | 40 |
| 2027 | 71 | 29 | 0 | (2) | 44 |
| 2028 | 70 | 29 | 0 | 2 | 40 |
| 2029 | 70 | 29 | 0 | 1 | 40 |
| Valuation Method | Fair Price (USD) | Potential Upside |
|---|---|---|
| 5-Year DCF (Growth) | 0.00 | -3524.7% |
| 10-Year DCF (Growth) | 0.00 | -3526.3% |
| 5-Year DCF (EBITDA) | 0.00 | -100.0% |
| 10-Year DCF (EBITDA) | 0.00 | -100.0% |
Is Navient Corp (NAVI) a buy or a sell? Navient Corp is definitely a sell. Based on our DCF analysis, Navient Corp (NAVI) appears to be overvalued with upside potential of -3526.3%.
Investors should consider reducing exposure at the current market price of $13.45.