Discounted Cash Flow (DCF) Analysis Levered
Employers Holdings, Inc. (EIG)
$37.65
-0.32 (-0.84%)
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 | 800.40 | 835.90 | 711.40 | 703.10 | 713.50 | 695.40 | 677.76 | 660.57 | 643.81 | 627.48 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 180.20 | 123.10 | 33.30 | 10.80 | 99.80 | 79.89 | 77.87 | 75.89 | 73.97 | 72.09 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -10.20 | -12.10 | -5.50 | -3.60 | -2.60 | -6.08 | -5.93 | -5.78 | -5.63 | -5.49 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 170 | 111 | 27.80 | 7.20 | 97.20 | 73.81 | 71.94 | 70.12 | 68.34 | 66.61 |
Weighted Average Cost Of Capital
Share price | $ 37.65 |
---|---|
Beta | 0.253 |
Diluted Shares Outstanding | 28.60 |
Cost of Debt | |
Tax Rate | 13.26 |
After-tax Cost of Debt | 3.66% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 5.413 |
Total Debt | 182.50 |
Total Equity | 1,076.83 |
Total Capital | 1,259.33 |
Debt Weighting | 14.49 |
Equity Weighting | 85.51 |
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 | 800.40 | 835.90 | 711.40 | 703.10 | 713.50 | 695.40 | 677.76 | 660.57 | 643.81 | 627.48 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 180.20 | 123.10 | 33.30 | 10.80 | 99.80 | 79.89 | 77.87 | 75.89 | 73.97 | 72.09 |
Capital Expenditure | -10.20 | -12.10 | -5.50 | -3.60 | -2.60 | -6.08 | -5.93 | -5.78 | -5.63 | -5.49 |
Free Cash Flow | 170 | 111 | 27.80 | 7.20 | 97.20 | 73.81 | 71.94 | 70.12 | 68.34 | 66.61 |
WACC | ||||||||||
PV LFCF | 70.19 | 65.06 | 60.29 | 55.88 | 51.79 | |||||
SUM PV LFCF | 303.21 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.16 |
Free cash flow (t + 1) | 67.94 |
Terminal Value | 2,149.91 |
Present Value of Terminal Value | 1,671.74 |
Intrinsic Value
Enterprise Value | 1,974.95 |
---|---|
Net Debt | 93.30 |
Equity Value | 1,881.65 |
Shares Outstanding | 28.60 |
Equity Value Per Share | 65.79 |