Discounted Cash Flow (DCF) Analysis Levered
National Western Life Group Inc (NWLI)
$206
-4.8 (-2.28%)
Free Cash Flow
Year A/P | 2015 Actual | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected |
| Revenue | 589.80 | 682.37 | 874.45 | 551.60 | 819.19 | 932.72 | 1,061.98 | 1,209.16 | 1,376.74 | 1,567.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 346.22 | 309.14 | 276.13 | 326.62 | 329.03 | 438.31 | 499.05 | 568.22 | 646.97 | 736.63 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | - | -50.21 | -9.12 | -3.14 | -2.84 | -21.73 | -24.74 | -28.17 | -32.07 | -36.51 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 346.22 | 258.93 | 267.01 | 323.48 | 326.18 | 416.58 | 474.32 | 540.05 | 614.90 | 700.12 |
Weighted Average Cost Of Capital
| Share price | $ 206 |
|---|---|
| Beta | 1.132 |
| Diluted Shares Outstanding | 3.64 |
| Cost of Debt | |
| Tax Rate | 20.31 |
| After-tax Cost of Debt | 3.98% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 11.471 |
| Total Debt | 10,463.19 |
| Total Equity | 749.02 |
| Total Capital | 11,212.21 |
| Debt Weighting | 93.32 |
| Equity Weighting | 6.68 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2015 Actual | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected | 2024 Projected |
| Revenue | 589.80 | 682.37 | 874.45 | 551.60 | 819.19 | 932.72 | 1,061.98 | 1,209.16 | 1,376.74 | 1,567.54 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 346.22 | 309.14 | 276.13 | 326.62 | 329.03 | 438.31 | 499.05 | 568.22 | 646.97 | 736.63 |
| Capital Expenditure | - | -50.21 | -9.12 | -3.14 | -2.84 | -21.73 | -24.74 | -28.17 | -32.07 | -36.51 |
| Free Cash Flow | 346.22 | 258.93 | 267.01 | 323.48 | 326.18 | 416.58 | 474.32 | 540.05 | 614.90 | 700.12 |
| WACC | ||||||||||
| PV LFCF | 454.75 | 495.57 | 540.05 | 588.53 | 641.36 | |||||
| SUM PV LFCF | 2,385.13 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.48 |
| Free cash flow (t + 1) | 728.12 |
| Terminal Value | 151,692.16 |
| Present Value of Terminal Value | 121,842.08 |
Intrinsic Value
| Enterprise Value | 124,227.21 |
|---|---|
| Net Debt | -253.53 |
| Equity Value | 124,480.73 |
| Shares Outstanding | 3.64 |
| Equity Value Per Share | 34,235.63 |