Discounted Cash Flow (DCF) Analysis Levered

CNA Financial Corporation (CNA)

$37

+0.15 (+0.41%)

All numbers are in Millions, Currency in USD

Stock DCF: 168.12 | 37 | 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	10,134	10,767	10,687	11,908	11,879	12,374.50	12,890.67	13,428.36	13,988.49	14,571.98
Revenue (%)
Operating Cash Flow	1,227	1,140	1,775	1,997	2,502	1,909.07	1,988.70	2,071.65	2,158.07	2,248.08
Operating Cash Flow (%)
Capital Expenditure	-99	-26	-23	-56.90	-56.77	-59.13	-61.60	-64.17	-66.85	-69.63
Capital Expenditure (%)
Free Cash Flow	1,128	1,114	1,752	1,940.10	2,445.23	1,849.94	1,927.10	2,007.48	2,091.22	2,178.45

Weighted Average Cost Of Capital

Share price	$ 37
Beta	0.673
Diluted Shares Outstanding	272.50
Cost of Debt
Tax Rate	17.30
After-tax Cost of Debt	3.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.879
Total Debt	2,781
Total Equity	10,082.50
Total Capital	12,863.50
Debt Weighting	21.62
Equity Weighting	78.38
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	10,134	10,767	10,687	11,908	11,879	12,374.50	12,890.67	13,428.36	13,988.49	14,571.98
Operating Cash Flow	1,227	1,140	1,775	1,997	2,502	1,909.07	1,988.70	2,071.65	2,158.07	2,248.08
Capital Expenditure	-99	-26	-23	-56.90	-56.77	-59.13	-61.60	-64.17	-66.85	-69.63
Free Cash Flow	1,128	1,114	1,752	1,940.10	2,445.23	1,849.94	1,927.10	2,007.48	2,091.22	2,178.45
WACC
PV LFCF						1,743.41	1,711.56	1,680.29	1,649.58	1,619.44
SUM PV LFCF										8,404.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.11
Free cash flow (t + 1)	2,222.02
Terminal Value	54,063.71
Present Value of Terminal Value	40,190.58

Intrinsic Value

Enterprise Value	48,594.87
Net Debt	2,781
Equity Value	45,813.87
Shares Outstanding	272.50
Equity Value Per Share	168.12