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 7,5948,46910,77815,05411,44613,005.3114,777.0516,790.1519,077.5121,676.47
Revenue (%)
Operating Cash Flow 9431,1211,5784,0904,3552,744.443,118.323,543.134,025.824,574.27
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 8601,0251,4683,9594,2172,605.982,9613,364.393,822.724,343.50

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 7,5948,46910,77815,05411,44613,005.3114,777.0516,790.1519,077.5121,676.47
Operating Cash Flow 9431,1211,5784,0904,3552,744.443,118.323,543.134,025.824,574.27
Capital Expenditure -83-96-110-131-138-138.45-157.32-178.75-203.10-230.77
Free Cash Flow 8601,0251,4683,9594,2172,605.982,9613,364.393,822.724,343.50
WACC
PV LFCF 2,414.292,541.412,675.212,816.072,964.34
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