Discounted Cash Flow (DCF) Analysis Levered

Chubb Limited (CB)

$192.59

+0.97 (+0.51%)

All numbers are in Millions, Currency in USD

Stock DCF: 628.02 | 192.59 | 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	32,717	34,186	36,052	40,955	43,124	46,233.70	49,567.64	53,141.99	56,974.10	61,082.53
Revenue (%)
Operating Cash Flow	5,480	6,342	9,785	11,149	11,243	10,701.84	11,473.56	12,300.93	13,187.95	14,138.95
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	10,701.84	11,473.56	12,300.93	13,187.95	14,138.95

Weighted Average Cost Of Capital

Share price	$ 192.59
Beta	0.651
Diluted Shares Outstanding	453.40
Cost of Debt
Tax Rate	19.11
After-tax Cost of Debt	3.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.856
Total Debt	14,877
Total Equity	87,320.31
Total Capital	102,197.31
Debt Weighting	14.56
Equity Weighting	85.44
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	32,717	34,186	36,052	40,955	43,124	46,233.70	49,567.64	53,141.99	56,974.10	61,082.53
Operating Cash Flow	5,480	6,342	9,785	11,149	11,243	10,701.84	11,473.56	12,300.93	13,187.95	14,138.95
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	10,701.84	11,473.56	12,300.93	13,187.95	14,138.95
WACC
PV LFCF						10,066.64	10,151.96	10,238.01	10,324.78	10,412.29
SUM PV LFCF										51,193.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.31
Free cash flow (t + 1)	14,421.72
Terminal Value	334,610.77
Present Value of Terminal Value	246,416.24

Intrinsic Value

Enterprise Value	297,609.92
Net Debt	12,865
Equity Value	284,744.92
Shares Outstanding	453.40
Equity Value Per Share	628.02