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	22,223	22,114	21,923	21,774.56	21,627.13	21,480.69	21,335.25	21,190.79	21,047.30	20,904.79
Revenue (%)
Operating Cash Flow	5,455	5,958	5,051	5,409.42	5,372.80	5,336.42	5,300.29	5,264.40	5,228.75	5,193.35
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	5,336.42	5,300.29	5,264.40	5,228.75	5,193.35

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	22,223	22,114	21,923	21,774.56	21,627.13	21,480.69	21,335.25	21,190.79	21,047.30	20,904.79
Operating Cash Flow	5,455	5,958	5,051	5,409.42	5,372.80	5,336.42	5,300.29	5,264.40	5,228.75	5,193.35
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	5,336.42	5,300.29	5,264.40	5,228.75	5,193.35
WACC
PV LFCF				-	-	4,634.14	4,289.22	3,969.98	3,674.49	3,401
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