Discounted Cash Flow (DCF) Analysis Levered

Aflac Incorporated (AFL)

$68.97

+0.76 (+1.11%)
All numbers are in Millions, Currency in USD
Stock DCF: 130.97 | 68.97 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 22,22322,11421,92321,774.5621,627.1321,480.6921,335.2521,190.7921,047.3020,904.79
Revenue (%)
Operating Cash Flow 5,4555,9585,0515,409.425,372.805,336.425,300.295,264.405,228.755,193.35
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----5,336.425,300.295,264.405,228.755,193.35

Weighted Average Cost Of Capital

Share price $ 68.97
Beta 0.931
Diluted Shares Outstanding 676.73
Cost of Debt
Tax Rate 18.73
After-tax Cost of Debt 2.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.138
Total Debt 7,956
Total Equity 46,674
Total Capital 54,630
Debt Weighting 14.56
Equity Weighting 85.44
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 22,22322,11421,92321,774.5621,627.1321,480.6921,335.2521,190.7921,047.3020,904.79
Operating Cash Flow 5,4555,9585,0515,409.425,372.805,336.425,300.295,264.405,228.755,193.35
Capital Expenditure ----------
Free Cash Flow -----5,336.425,300.295,264.405,228.755,193.35
WACC
PV LFCF --4,634.144,289.223,969.983,674.493,401
SUM PV LFCF 21,428.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.31
Free cash flow (t + 1) 5,297.22
Terminal Value 99,759.24
Present Value of Terminal Value 70,105.51

Intrinsic Value

Enterprise Value 91,534.06
Net Debt 2,905
Equity Value 88,629.06
Shares Outstanding 676.73
Equity Value Per Share 130.97