Discounted Cash Flow (DCF) Analysis Levered

Chubb Limited (CB)

$208.1035

+0.12 (+0.06%)

All numbers are in Millions, Currency in USD

Stock DCF: 571.99 | 208.1035 | 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	32,243	32,717	34,186	35,994	40,963	43,528.71	46,255.12	49,152.29	52,230.94	55,502.41
Revenue (%)
Operating Cash Flow	4,503	5,480	6,342	9,785	11,149	9,025.18	9,590.47	10,191.17	10,829.49	11,507.79
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	9,025.18	9,590.47	10,191.17	10,829.49	11,507.79

Weighted Average Cost Of Capital

Share price	$ 208.1,035
Beta	0.766
Diluted Shares Outstanding	453.40
Cost of Debt
Tax Rate	13.01
After-tax Cost of Debt	2.64%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.374
Total Debt	16,168
Total Equity	94,354.13
Total Capital	110,522.13
Debt Weighting	14.63
Equity Weighting	85.37
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	32,243	32,717	34,186	35,994	40,963	43,528.71	46,255.12	49,152.29	52,230.94	55,502.41
Operating Cash Flow	4,503	5,480	6,342	9,785	11,149	9,025.18	9,590.47	10,191.17	10,829.49	11,507.79
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	9,025.18	9,590.47	10,191.17	10,829.49	11,507.79
WACC
PV LFCF						8,528	8,562.93	8,598	8,633.22	8,668.58
SUM PV LFCF										42,990.74

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.83
Free cash flow (t + 1)	11,737.95
Terminal Value	306,473.85
Present Value of Terminal Value	230,860.40

Intrinsic Value

Enterprise Value	273,851.14
Net Debt	14,509
Equity Value	259,342.14
Shares Outstanding	453.40
Equity Value Per Share	571.99