Discounted Cash Flow (DCF) Analysis Levered

Fidelity National Financial, Inc. (FNF)

$42.9

-0.62 (-1.42%)

All numbers are in Millions, Currency in USD

Stock DCF: 228.20 | 42.9 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	7,663	7,594	8,469	10,778	15,054	17,972.95	21,457.87	25,618.52	30,585.91	36,516.47
Revenue (%)
Operating Cash Flow	737	943	1,121	1,578	4,090	2,770.77	3,308.02	3,949.44	4,715.22	5,629.50
Operating Cash Flow (%)
Capital Expenditure	-149	-83	-96	-110	-131	-217.89	-260.14	-310.58	-370.81	-442.71
Capital Expenditure (%)
Free Cash Flow	588	860	1,025	1,468	3,959	2,552.87	3,047.87	3,638.85	4,344.42	5,186.79

Weighted Average Cost Of Capital

Share price	$ 42.9
Beta	1.335
Diluted Shares Outstanding	310.42
Cost of Debt
Tax Rate	21.44
After-tax Cost of Debt	2.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.851
Total Debt	3,510
Total Equity	13,316.98
Total Capital	16,826.98
Debt Weighting	20.86
Equity Weighting	79.14
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	7,663	7,594	8,469	10,778	15,054	17,972.95	21,457.87	25,618.52	30,585.91	36,516.47
Operating Cash Flow	737	943	1,121	1,578	4,090	2,770.77	3,308.02	3,949.44	4,715.22	5,629.50
Capital Expenditure	-149	-83	-96	-110	-131	-217.89	-260.14	-310.58	-370.81	-442.71
Free Cash Flow	588	860	1,025	1,468	3,959	2,552.87	3,047.87	3,638.85	4,344.42	5,186.79
WACC
PV LFCF						2,356.57	2,597.16	2,862.32	3,154.54	3,476.60
SUM PV LFCF										14,447.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.33
Free cash flow (t + 1)	5,290.53
Terminal Value	83,578.68
Present Value of Terminal Value	56,021.12

Intrinsic Value

Enterprise Value	70,468.32
Net Debt	-370
Equity Value	70,838.32
Shares Outstanding	310.42
Equity Value Per Share	228.20