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 10,13410,76710,68711,90811,87912,374.5012,890.6713,428.3613,988.4914,571.98
Revenue (%)
Operating Cash Flow 1,2271,1401,7751,9972,5021,909.071,988.702,071.652,158.072,248.08
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 1,1281,1141,7521,940.102,445.231,849.941,927.102,007.482,091.222,178.45

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 10,13410,76710,68711,90811,87912,374.5012,890.6713,428.3613,988.4914,571.98
Operating Cash Flow 1,2271,1401,7751,9972,5021,909.071,988.702,071.652,158.072,248.08
Capital Expenditure -99-26-23-56.90-56.77-59.13-61.60-64.17-66.85-69.63
Free Cash Flow 1,1281,1141,7521,940.102,445.231,849.941,927.102,007.482,091.222,178.45
WACC
PV LFCF 1,743.411,711.561,680.291,649.581,619.44
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