Discounted Cash Flow (DCF) Analysis Levered

Fidelity National Financial, Inc. (FNF)

$33.32

+0.29 (+0.88%)

All numbers are in Millions, Currency in USD

Stock DCF: 159.74 | 33.32 | 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	11,556	13,151.41	14,967.07	17,033.40	19,385.01	22,061.28
Revenue (%)
Operating Cash Flow	943	1,121	1,578	4,090	688	1,931.09	2,197.69	2,501.10	2,846.40	3,239.37
Operating Cash Flow (%)
Capital Expenditure	-83	-96	-110	-131	-118.95	-135.37	-154.06	-175.33	-199.54	-227.08
Capital Expenditure (%)
Free Cash Flow	860	1,025	1,468	3,959	569.05	1,795.72	2,043.63	2,325.77	2,646.87	3,012.29

Weighted Average Cost Of Capital

Share price	$ 33.32
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	9.977
Total Debt	3,656
Total Equity	9,229.64
Total Capital	12,885.64
Debt Weighting	28.37
Equity Weighting	71.63
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	11,556	13,151.41	14,967.07	17,033.40	19,385.01	22,061.28
Operating Cash Flow	943	1,121	1,578	4,090	688	1,931.09	2,197.69	2,501.10	2,846.40	3,239.37
Capital Expenditure	-83	-96	-110	-131	-118.95	-135.37	-154.06	-175.33	-199.54	-227.08
Free Cash Flow	860	1,025	1,468	3,959	569.05	1,795.72	2,043.63	2,325.77	2,646.87	3,012.29
WACC
PV LFCF						1,544.97	1,630.89	1,721.60	1,817.34	1,918.42
SUM PV LFCF										9,307.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.81
Free cash flow (t + 1)	3,072.54
Terminal Value	52,883.58
Present Value of Terminal Value	36,309.95

Intrinsic Value

Enterprise Value	45,617.42
Net Debt	1,370
Equity Value	44,247.42
Shares Outstanding	277
Equity Value Per Share	159.74