Discounted Cash Flow (DCF) Analysis Levered
Centene Corporation (CNC)
$70.99
-0.02 (-0.03%)
All numbers are in Millions, Currency in USD
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 | 48,382 | 60,116 | 74,639 | 111,115 | 125,982 | 160,835.19 | 205,330.58 | 262,135.71 | 334,656.11 | 427,239.42 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 1,489 | 1,234 | 1,483 | 5,503 | 4,205 | 4,956.13 | 6,327.26 | 8,077.71 | 10,312.42 | 13,165.37 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -422 | -675 | -730 | -869 | -910 | -1,440.28 | -1,838.73 | -2,347.42 | -2,996.84 | -3,825.92 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,067 | 559 | 753 | 4,634 | 3,295 | 3,515.86 | 4,488.52 | 5,730.28 | 7,315.58 | 9,339.45 |
Weighted Average Cost Of Capital
| Share price | $ 70.99 |
|---|---|
| Beta | 0.588 |
| Diluted Shares Outstanding | 590.52 |
| Cost of Debt | |
| Tax Rate | 25.70 |
| After-tax Cost of Debt | 2.62% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 6.389 |
| Total Debt | 18,838 |
| Total Equity | 41,920.73 |
| Total Capital | 60,758.73 |
| Debt Weighting | 31.00 |
| Equity Weighting | 69.00 |
| 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 | 48,382 | 60,116 | 74,639 | 111,115 | 125,982 | 160,835.19 | 205,330.58 | 262,135.71 | 334,656.11 | 427,239.42 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 1,489 | 1,234 | 1,483 | 5,503 | 4,205 | 4,956.13 | 6,327.26 | 8,077.71 | 10,312.42 | 13,165.37 |
| Capital Expenditure | -422 | -675 | -730 | -869 | -910 | -1,440.28 | -1,838.73 | -2,347.42 | -2,996.84 | -3,825.92 |
| Free Cash Flow | 1,067 | 559 | 753 | 4,634 | 3,295 | 3,515.86 | 4,488.52 | 5,730.28 | 7,315.58 | 9,339.45 |
| WACC | ||||||||||
| PV LFCF | 2,590.84 | 3,143.51 | 3,814.08 | 4,627.69 | 5,614.85 | |||||
| SUM PV LFCF | 25,524.59 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.22 |
| Free cash flow (t + 1) | 9,526.24 |
| Terminal Value | 295,845.92 |
| Present Value of Terminal Value | 229,389.79 |
Intrinsic Value
| Enterprise Value | 254,914.38 |
|---|---|
| Net Debt | 5,720 |
| Equity Value | 249,194.38 |
| Shares Outstanding | 590.52 |
| Equity Value Per Share | 421.99 |