Discounted Cash Flow (DCF) Analysis Levered

Fidelity National Financial, Inc. (FNF)

$33.93

+0.61 (+1.83%)

All numbers are in Millions, Currency in USD

Stock DCF: 227.87 | 33.93 | 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	7,594	8,469	10,778	15,054	11,446	13,005.31	14,777.05	16,790.15	19,077.51	21,676.47
Revenue (%)
Operating Cash Flow	943	1,121	1,578	4,090	4,355	2,744.44	3,118.32	3,543.13	4,025.82	4,574.27
Operating Cash Flow (%)
Capital Expenditure	-83	-96	-110	-131	-138	-138.45	-157.32	-178.75	-203.10	-230.77
Capital Expenditure (%)
Free Cash Flow	860	1,025	1,468	3,959	4,217	2,605.98	2,961	3,364.39	3,822.72	4,343.50

Weighted Average Cost Of Capital

Share price	$ 33.93
Beta	1.398
Diluted Shares Outstanding	277
Cost of Debt
Tax Rate	25.99
After-tax Cost of Debt	2.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.125
Total Debt	3,656
Total Equity	9,398.61
Total Capital	13,054.61
Debt Weighting	28.01
Equity Weighting	71.99
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	7,594	8,469	10,778	15,054	11,446	13,005.31	14,777.05	16,790.15	19,077.51	21,676.47
Operating Cash Flow	943	1,121	1,578	4,090	4,355	2,744.44	3,118.32	3,543.13	4,025.82	4,574.27
Capital Expenditure	-83	-96	-110	-131	-138	-138.45	-157.32	-178.75	-203.10	-230.77
Free Cash Flow	860	1,025	1,468	3,959	4,217	2,605.98	2,961	3,364.39	3,822.72	4,343.50
WACC
PV LFCF						2,414.29	2,541.41	2,675.21	2,816.07	2,964.34
SUM PV LFCF										13,411.32

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.94
Free cash flow (t + 1)	4,430.37
Terminal Value	74,585.34
Present Value of Terminal Value	50,902.77

Intrinsic Value

Enterprise Value	64,314.08
Net Debt	1,194
Equity Value	63,120.08
Shares Outstanding	277
Equity Value Per Share	227.87