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 7,6637,5948,46910,77815,05417,972.9521,457.8725,618.5230,585.9136,516.47
Revenue (%)
Operating Cash Flow 7379431,1211,5784,0902,770.773,308.023,949.444,715.225,629.50
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 5888601,0251,4683,9592,552.873,047.873,638.854,344.425,186.79

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 7,6637,5948,46910,77815,05417,972.9521,457.8725,618.5230,585.9136,516.47
Operating Cash Flow 7379431,1211,5784,0902,770.773,308.023,949.444,715.225,629.50
Capital Expenditure -149-83-96-110-131-217.89-260.14-310.58-370.81-442.71
Free Cash Flow 5888601,0251,4683,9592,552.873,047.873,638.854,344.425,186.79
WACC
PV LFCF 2,356.572,597.162,862.323,154.543,476.60
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