Discounted Cash Flow (DCF) Analysis Levered

American International Group, Inc. (AIG)

$56.61

-0.02 (-0.04%)

All numbers are in Millions, Currency in USD

Stock DCF: 56.34 | 56.61 | overvalue

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	47,481	49,792	43,839	51,885	56,437	59,264.25	62,233.12	65,350.73	68,624.52	72,062.30
Revenue (%)
Operating Cash Flow	61	-928	1,038	6,279	4,207	2,392.92	2,512.79	2,638.67	2,770.86	2,909.67
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	2,392.92	2,512.79	2,638.67	2,770.86	2,909.67

Weighted Average Cost Of Capital

Share price	$ 56.61
Beta	1.130
Diluted Shares Outstanding	787.94
Cost of Debt
Tax Rate	28.25
After-tax Cost of Debt	1.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.088
Total Debt	42,598
Total Equity	44,605.38
Total Capital	87,203.38
Debt Weighting	48.85
Equity Weighting	51.15
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	47,481	49,792	43,839	51,885	56,437	59,264.25	62,233.12	65,350.73	68,624.52	72,062.30
Operating Cash Flow	61	-928	1,038	6,279	4,207	2,392.92	2,512.79	2,638.67	2,770.86	2,909.67
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	2,392.92	2,512.79	2,638.67	2,770.86	2,909.67
WACC
PV LFCF						2,266.67	2,254.63	2,242.66	2,230.76	2,218.92
SUM PV LFCF										11,213.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.57
Free cash flow (t + 1)	2,967.86
Terminal Value	83,133.40
Present Value of Terminal Value	63,397.62

Intrinsic Value

Enterprise Value	74,611.26
Net Debt	30,222
Equity Value	44,389.26
Shares Outstanding	787.94
Equity Value Per Share	56.34