Discounted Cash Flow (DCF) Analysis Levered

Employers Holdings, Inc. (EIG)

$46.14

-0.19 (-0.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 65.36 | 46.14 | 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 800.40835.90711.40703.10713.50695.40677.76660.57643.81627.48
Revenue (%)
Operating Cash Flow 180.20123.1033.3010.8099.8079.8977.8775.8973.9772.09
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 17011127.807.2097.2073.8171.9470.1268.3466.61

Weighted Average Cost Of Capital

Share price $ 46.14
Beta 0.232
Diluted Shares Outstanding 28.60
Cost of Debt
Tax Rate 13.26
After-tax Cost of Debt 3.72%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.380
Total Debt 182.50
Total Equity 1,319.65
Total Capital 1,502.15
Debt Weighting 12.15
Equity Weighting 87.85
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 800.40835.90711.40703.10713.50695.40677.76660.57643.81627.48
Operating Cash Flow 180.20123.1033.3010.8099.8079.8977.8775.8973.9772.09
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 17011127.807.2097.2073.8171.9470.1268.3466.61
WACC
PV LFCF 70.1865.0360.2655.8451.74
SUM PV LFCF 303.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.18
Free cash flow (t + 1) 67.94
Terminal Value 2,136.39
Present Value of Terminal Value 1,659.64

Intrinsic Value

Enterprise Value 1,962.69
Net Debt 93.30
Equity Value 1,869.39
Shares Outstanding 28.60
Equity Value Per Share 65.36