Discounted Cash Flow (DCF) Analysis Levered

Brighthouse Financial, Inc. (BHF)

$43.98

+0.70 (+1.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 520.87 | 43.98 | undervalue

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	8,925	6,554	8,266	5,751	8,473	8,821.68	9,184.71	9,562.67	9,956.19	10,365.91
Revenue (%)
Operating Cash Flow	3,062	1,828	888	746	-1,151	1,276.14	1,328.65	1,383.33	1,440.26	1,499.52
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	1,276.14	1,328.65	1,383.33	1,440.26	1,499.52

Weighted Average Cost Of Capital

Share price	$ 43.98
Beta	1.315
Diluted Shares Outstanding	84.47
Cost of Debt
Tax Rate	102.91
After-tax Cost of Debt	-0.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.744
Total Debt	3,156
Total Equity	3,714.82
Total Capital	6,870.82
Debt Weighting	45.93
Equity Weighting	54.07
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	8,925	6,554	8,266	5,751	8,473	8,821.68	9,184.71	9,562.67	9,956.19	10,365.91
Operating Cash Flow	3,062	1,828	888	746	-1,151	1,276.14	1,328.65	1,383.33	1,440.26	1,499.52
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	1,276.14	1,328.65	1,383.33	1,440.26	1,499.52
WACC
PV LFCF						1,213.06	1,200.55	1,188.17	1,175.92	1,163.79
SUM PV LFCF										5,941.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.20
Free cash flow (t + 1)	1,529.51
Terminal Value	47,797.33
Present Value of Terminal Value	37,095.82

Intrinsic Value

Enterprise Value	43,037.30
Net Debt	-959
Equity Value	43,996.30
Shares Outstanding	84.47
Equity Value Per Share	520.87