Discounted Cash Flow (DCF) Analysis Levered
National Western Life Group Inc. (NWLI)
$198.19
2 (+1.02%)
Free Cash Flow
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected |
| Revenue | 682.37 | 874.45 | 551.61 | 819.19 | 927.73 | 1,050.66 | 1,189.87 | 1,347.53 |
|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||
| Operating Cash Flow | 309.11 | 276.15 | 326.61 | 329.07 | 408.85 | 463.02 | 524.38 | 593.86 |
| Operating Cash Flow (%) | ||||||||
| Capital Expenditure | 50.22 | 9.09 | 3.14 | 2.87 | 21.62 | 24.48 | 27.72 | 31.40 |
| Capital Expenditure (%) | ||||||||
| Free Cash Flow | 359.33 | 285.25 | 329.75 | 331.94 | 430.47 | 487.50 | 552.10 | 625.25 |
Weighted Average Cost Of Capital
Weighted Average Cost Of Capital
| Share price | $ 198.19 |
|---|---|
| Diluted Shares Outstanding | 3.44 |
| Cost of Debt | |
| Tax Rate | 20.31 |
| After-tax Cost of Debt | -0.97 |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.30 |
| Total Debt | - |
| Total Equity | 680.98 |
| Total Capital | 680.98 |
| Debt Weighting | 0.00 |
| Equity Weighting | 100.00 |
| Wacc |
Build Up Free Cash Flow
Year A/P | 2016 Actual | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Projected | 2021 Projected | 2022 Projected | 2023 Projected |
| Revenue | 682.37 | 874.45 | 551.61 | 819.19 | 927.73 | 1,050.66 | 1,189.87 | 1,347.53 |
|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 309.11 | 276.15 | 326.61 | 329.07 | 408.85 | 463.02 | 524.38 | 593.86 |
| Capital Expenditure | 50.22 | 9.09 | 3.14 | 2.87 | 21.62 | 24.48 | 27.72 | 31.40 |
| Free Cash Flow | 359.33 | 285.25 | 329.75 | 331.94 | 430.47 | 487.50 | 552.10 | 625.25 |
| WACC | ||||||||
| PV LFCF | 514.26 | 532.84 | 552.10 | 572.05 | ||||
| SUM PV LFCF | - |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 9.30 |
| Free cash flow (t + 1) | 227.31 |
| Terminal Value | 4,288.79 |
| Present Value of Terminal Value | 2,749.38 |
Intrinsic Value
| Enterprise Value | - |
|---|---|
| Net Debt | -253.54 |
| Equity Value | - |
| Shares Outstanding | 3.44 |
| Equity Value Per Share | - |