Discounted Cash Flow (DCF) Analysis Levered

Aflac Incorporated (AFL)

$58.935

+1.14 (+1.96%)

All numbers are in Millions, Currency in USD

Stock DCF: 164.00 | 58.935 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	21,600	21,689	22,223	22,116	21,923	22,006.31	22,089.93	22,173.87	22,258.13	22,342.70
Revenue (%)
Operating Cash Flow	6,128	6,014	5,455	5,958	5,051	5,749.14	5,770.99	5,792.92	5,814.93	5,837.02
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	5,749.14	5,770.99	5,792.92	5,814.93	5,837.02

Weighted Average Cost Of Capital

Share price	$ 58.935
Beta	0.955
Diluted Shares Outstanding	716.19
Cost of Debt
Tax Rate	18.73
After-tax Cost of Debt	2.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.278
Total Debt	7,956
Total Equity	42,208.78
Total Capital	50,164.78
Debt Weighting	15.86
Equity Weighting	84.14
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	21,600	21,689	22,223	22,116	21,923	22,006.31	22,089.93	22,173.87	22,258.13	22,342.70
Operating Cash Flow	6,128	6,014	5,455	5,958	5,051	5,749.14	5,770.99	5,792.92	5,814.93	5,837.02
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	5,749.14	5,770.99	5,792.92	5,814.93	5,837.02
WACC
PV LFCF						4,467.26	4,210.16	3,967.85	3,739.48	3,524.26
SUM PV LFCF										24,055.86

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.51
Free cash flow (t + 1)	5,953.77
Terminal Value	132,012.54
Present Value of Terminal Value	96,308.20

Intrinsic Value

Enterprise Value	120,364.06
Net Debt	2,905
Equity Value	117,459.06
Shares Outstanding	716.19
Equity Value Per Share	164.00