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 47,48149,79243,83951,88556,43759,264.2562,233.1265,350.7368,624.5272,062.30
Revenue (%)
Operating Cash Flow 61-9281,0386,2794,2072,392.922,512.792,638.672,770.862,909.67
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----2,392.922,512.792,638.672,770.862,909.67

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 47,48149,79243,83951,88556,43759,264.2562,233.1265,350.7368,624.5272,062.30
Operating Cash Flow 61-9281,0386,2794,2072,392.922,512.792,638.672,770.862,909.67
Capital Expenditure ----------
Free Cash Flow -----2,392.922,512.792,638.672,770.862,909.67
WACC
PV LFCF 2,266.672,254.632,242.662,230.762,218.92
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