Discounted Cash Flow (DCF) Analysis Levered

National Western Life Group Inc

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 589.80682.37874.45551.60819.19932.721,061.981,209.161,376.741,567.54
Revenue (%)
Operating Cash Flow 346.22309.14276.13326.62329.03438.31499.05568.22646.97736.63
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 346.22258.93267.01323.48326.18416.58474.32540.05614.90700.12

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 589.80682.37874.45551.60819.19932.721,061.981,209.161,376.741,567.54
Operating Cash Flow 346.22309.14276.13326.62329.03438.31499.05568.22646.97736.63
Capital Expenditure --50.21-9.12-3.14-2.84-21.73-24.74-28.17-32.07-36.51
Free Cash Flow 346.22258.93267.01323.48326.18416.58474.32540.05614.90700.12
WACC
PV LFCF 454.75495.57540.05588.53641.36
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