Discounted Cash Flow (DCF) Analysis Levered

Aflac Incorporated (AFL)

$76.26

-0.89 (-1.15%)

All numbers are in Millions, Currency in USD

Stock DCF: 93.32 | 76.26 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	21,758	22,307	22,147	22,106	19,140	18,575.54	18,027.74	17,496.08	16,980.11	16,479.35
Revenue (%)
Operating Cash Flow	6,014	5,455	5,958	5,051	3,879	4,536.60	4,402.81	4,272.97	4,146.95	4,024.66
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	4,536.60	4,402.81	4,272.97	4,146.95	4,024.66

Weighted Average Cost Of Capital

Share price	$ 76.26
Beta	0.934
Diluted Shares Outstanding	637.65
Cost of Debt
Tax Rate	9.26
After-tax Cost of Debt	2.76%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.884
Total Debt	7,442
Total Equity	48,627.57
Total Capital	56,069.57
Debt Weighting	13.27
Equity Weighting	86.73
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	21,758	22,307	22,147	22,106	19,140	18,575.54	18,027.74	17,496.08	16,980.11	16,479.35
Operating Cash Flow	6,014	5,455	5,958	5,051	3,879	4,536.60	4,402.81	4,272.97	4,146.95	4,024.66
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	4,536.60	4,402.81	4,272.97	4,146.95	4,024.66
WACC
PV LFCF						4,197.83	3,769.81	3,385.43	3,040.25	2,730.25
SUM PV LFCF										17,123.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.07
Free cash flow (t + 1)	4,105.15
Terminal Value	67,630.15
Present Value of Terminal Value	45,879.07

Intrinsic Value

Enterprise Value	63,002.64
Net Debt	3,499
Equity Value	59,503.64
Shares Outstanding	637.65
Equity Value Per Share	93.32