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 |