Discounted Cash Flow (DCF) Analysis Levered

Elevance Health Inc. (ANTM)

$482.58

+12.71 (+2.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 690.04 | 482.58 | 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 90,039.4092,105104,213121,867138,639154,631.99172,469.88192,365.50214,556.21239,306.79
Revenue (%)
Operating Cash Flow 4,184.803,8276,06110,6888,3649,099.1410,148.7911,319.5212,625.3114,081.73
Operating Cash Flow (%)
Capital Expenditure -799.50-1,208-1,077-1,021-1,087-1,501.41-1,674.61-1,867.79-2,083.26-2,323.57
Capital Expenditure (%)
Free Cash Flow 3,385.302,6194,9849,6677,2777,597.728,474.179,451.7310,542.0511,758.15

Weighted Average Cost Of Capital

Share price $ 482.58
Beta 0.974
Diluted Shares Outstanding 254.30
Cost of Debt
Tax Rate 22.98
After-tax Cost of Debt 2.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.293
Total Debt 23,031
Total Equity 122,720.09
Total Capital 145,751.09
Debt Weighting 15.80
Equity Weighting 84.20
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 90,039.4092,105104,213121,867138,639154,631.99172,469.88192,365.50214,556.21239,306.79
Operating Cash Flow 4,184.803,8276,06110,6888,3649,099.1410,148.7911,319.5212,625.3114,081.73
Capital Expenditure -799.50-1,208-1,077-1,021-1,087-1,501.41-1,674.61-1,867.79-2,083.26-2,323.57
Free Cash Flow 3,385.302,6194,9849,6677,2777,597.728,474.179,451.7310,542.0511,758.15
WACC
PV LFCF 6,132.976,369.136,614.396,869.097,133.61
SUM PV LFCF 38,202.19

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.40
Free cash flow (t + 1) 11,993.32
Terminal Value 222,098.43
Present Value of Terminal Value 155,426.15

Intrinsic Value

Enterprise Value 193,628.34
Net Debt 18,151
Equity Value 175,477.34
Shares Outstanding 254.30
Equity Value Per Share 690.04