Discounted Cash Flow (DCF) Analysis Levered
The Hartford Financial Services Gro... (HIG)
$70.7
+0.85 (+1.22%)
All numbers are in Millions, Currency in USD
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 | 16,974 | 18,955 | 20,740 | 20,320 | 21,649 | 23,034.70 | 24,509.10 | 26,077.88 | 27,747.07 | 29,523.09 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,186 | 2,843 | 3,489 | 3,871 | 4,093 | 3,807.92 | 4,051.66 | 4,310.99 | 4,586.93 | 4,880.53 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -250 | -122 | -105 | -114 | -133 | -174.98 | -186.18 | -198.09 | -210.77 | -224.26 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 1,936 | 2,721 | 3,384 | 3,757 | 3,960 | 3,632.94 | 3,865.48 | 4,112.90 | 4,376.16 | 4,656.27 |
Weighted Average Cost Of Capital
| Share price | $ 70.7 |
|---|---|
| Beta | 0.971 |
| Diluted Shares Outstanding | 345.60 |
| Cost of Debt | |
| Tax Rate | 18.34 |
| After-tax Cost of Debt | 3.86% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.339 |
| Total Debt | 4,944 |
| Total Equity | 24,433.92 |
| Total Capital | 29,377.92 |
| Debt Weighting | 16.83 |
| Equity Weighting | 83.17 |
| 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 | 16,974 | 18,955 | 20,740 | 20,320 | 21,649 | 23,034.70 | 24,509.10 | 26,077.88 | 27,747.07 | 29,523.09 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,186 | 2,843 | 3,489 | 3,871 | 4,093 | 3,807.92 | 4,051.66 | 4,310.99 | 4,586.93 | 4,880.53 |
| Capital Expenditure | -250 | -122 | -105 | -114 | -133 | -174.98 | -186.18 | -198.09 | -210.77 | -224.26 |
| Free Cash Flow | 1,936 | 2,721 | 3,384 | 3,757 | 3,960 | 3,632.94 | 3,865.48 | 4,112.90 | 4,376.16 | 4,656.27 |
| WACC | ||||||||||
| PV LFCF | 3,403.23 | 3,392.09 | 3,381 | 3,369.93 | 3,358.91 | |||||
| SUM PV LFCF | 16,905.16 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.75 |
| Free cash flow (t + 1) | 4,749.39 |
| Terminal Value | 99,987.20 |
| Present Value of Terminal Value | 72,128.18 |
Intrinsic Value
| Enterprise Value | 89,033.34 |
|---|---|
| Net Debt | 4,739 |
| Equity Value | 84,294.34 |
| Shares Outstanding | 345.60 |
| Equity Value Per Share | 243.91 |