Discounted Cash Flow (DCF) Analysis Levered
The Hartford Financial Services Gro... (HIG)
$70.98
-0.02 (-0.03%)
All numbers are in Millions, Currency in USD
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 | 18,955 | 20,740 | 20,320 | 21,649 | 21,854 | 22,666.93 | 23,510.09 | 24,384.63 | 25,291.69 | 26,232.49 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,843 | 3,489 | 3,871 | 4,093 | 4,008 | 3,994.71 | 4,143.30 | 4,297.43 | 4,457.28 | 4,623.08 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -122 | -105 | -114 | -133 | -175 | -141.72 | -146.99 | -152.45 | -158.13 | -164.01 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,721 | 3,384 | 3,757 | 3,960 | 3,833 | 3,852.99 | 3,996.32 | 4,144.97 | 4,299.16 | 4,459.08 |
Weighted Average Cost Of Capital
| Share price | $ 70.98 |
|---|---|
| Beta | 0.848 |
| Diluted Shares Outstanding | 345.60 |
| Cost of Debt | |
| Tax Rate | 19.62 |
| After-tax Cost of Debt | 3.93% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.749 |
| Total Debt | 4,357 |
| Total Equity | 24,530.69 |
| Total Capital | 28,887.69 |
| Debt Weighting | 15.08 |
| Equity Weighting | 84.92 |
| 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 | 18,955 | 20,740 | 20,320 | 21,649 | 21,854 | 22,666.93 | 23,510.09 | 24,384.63 | 25,291.69 | 26,232.49 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,843 | 3,489 | 3,871 | 4,093 | 4,008 | 3,994.71 | 4,143.30 | 4,297.43 | 4,457.28 | 4,623.08 |
| Capital Expenditure | -122 | -105 | -114 | -133 | -175 | -141.72 | -146.99 | -152.45 | -158.13 | -164.01 |
| Free Cash Flow | 2,721 | 3,384 | 3,757 | 3,960 | 3,833 | 3,852.99 | 3,996.32 | 4,144.97 | 4,299.16 | 4,459.08 |
| WACC | ||||||||||
| PV LFCF | 3,595.21 | 3,479.47 | 3,367.46 | 3,259.04 | 3,154.12 | |||||
| SUM PV LFCF | 16,855.31 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.17 |
| Free cash flow (t + 1) | 4,548.26 |
| Terminal Value | 87,974.05 |
| Present Value of Terminal Value | 62,228.37 |
Intrinsic Value
| Enterprise Value | 79,083.68 |
|---|---|
| Net Debt | 4,128 |
| Equity Value | 74,955.68 |
| Shares Outstanding | 345.60 |
| Equity Value Per Share | 216.89 |