Discounted Cash Flow (DCF) Analysis Levered

CNO Financial Group, Inc. (CNO)

$21.12

+0.16 (+0.76%)

All numbers are in Millions, Currency in USD

Stock DCF: 67.63 | 21.12 | 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	4,313.50	4,015.80	3,821.10	4,122.20	3,576.80	3,423.88	3,277.51	3,137.39	3,003.26	2,874.86
Revenue (%)
Operating Cash Flow	317.80	696.70	735.50	598.30	495.40	495.29	474.12	453.85	434.45	415.87
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	495.29	474.12	453.85	434.45	415.87

Weighted Average Cost Of Capital

Share price	$ 21.12
Beta	1.169
Diluted Shares Outstanding	129.02
Cost of Debt
Tax Rate	23.29
After-tax Cost of Debt	2.71%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.898
Total Debt	3,882.90
Total Equity	2,724.86
Total Capital	6,607.76
Debt Weighting	58.76
Equity Weighting	41.24
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	4,313.50	4,015.80	3,821.10	4,122.20	3,576.80	3,423.88	3,277.51	3,137.39	3,003.26	2,874.86
Operating Cash Flow	317.80	696.70	735.50	598.30	495.40	495.29	474.12	453.85	434.45	415.87
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	495.29	474.12	453.85	434.45	415.87
WACC
PV LFCF						470.54	427.92	389.16	353.90	321.84
SUM PV LFCF										1,963.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.26
Free cash flow (t + 1)	424.19
Terminal Value	13,012.01
Present Value of Terminal Value	10,069.95

Intrinsic Value

Enterprise Value	12,033.32
Net Debt	3,307.20
Equity Value	8,726.12
Shares Outstanding	129.02
Equity Value Per Share	67.63