Discounted Cash Flow (DCF) Analysis Levered
Centene Corporation (CNC)
$64.05
+1.47 (+2.35%)
All numbers are in Millions, Currency in USD
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 | 60,116 | 74,639 | 111,115 | 125,982 | 144,547 | 181,097.25 | 226,889.61 | 284,261.06 | 356,139.49 | 446,193.15 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,234 | 1,483 | 5,503 | 4,205 | 6,261 | 6,034.65 | 7,560.58 | 9,472.35 | 11,867.54 | 14,868.37 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -675 | -730 | -869 | -910 | -1,004 | -1,557.38 | -1,951.18 | -2,444.56 | -3,062.69 | -3,837.13 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 559 | 753 | 4,634 | 3,295 | 5,257 | 4,477.27 | 5,609.40 | 7,027.79 | 8,804.85 | 11,031.25 |
Weighted Average Cost Of Capital
| Share price | $ 64.05 |
|---|---|
| Beta | 0.561 |
| Diluted Shares Outstanding | 582.04 |
| Cost of Debt | |
| Tax Rate | 38.74 |
| After-tax Cost of Debt | 2.26% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.027 |
| Total Debt | 18,020 |
| Total Equity | 37,279.66 |
| Total Capital | 55,299.66 |
| Debt Weighting | 32.59 |
| Equity Weighting | 67.41 |
| 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 | 60,116 | 74,639 | 111,115 | 125,982 | 144,547 | 181,097.25 | 226,889.61 | 284,261.06 | 356,139.49 | 446,193.15 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,234 | 1,483 | 5,503 | 4,205 | 6,261 | 6,034.65 | 7,560.58 | 9,472.35 | 11,867.54 | 14,868.37 |
| Capital Expenditure | -675 | -730 | -869 | -910 | -1,004 | -1,557.38 | -1,951.18 | -2,444.56 | -3,062.69 | -3,837.13 |
| Free Cash Flow | 559 | 753 | 4,634 | 3,295 | 5,257 | 4,477.27 | 5,609.40 | 7,027.79 | 8,804.85 | 11,031.25 |
| WACC | ||||||||||
| PV LFCF | 4,076.53 | 4,873.40 | 5,826.05 | 6,964.91 | 8,326.39 | |||||
| SUM PV LFCF | 31,510.51 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 4.80 |
| Free cash flow (t + 1) | 11,251.87 |
| Terminal Value | 401,852.55 |
| Present Value of Terminal Value | 317,877.89 |
Intrinsic Value
| Enterprise Value | 349,388.40 |
|---|---|
| Net Debt | 5,946 |
| Equity Value | 343,442.40 |
| Shares Outstanding | 582.04 |
| Equity Value Per Share | 590.07 |