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
Stock DCF: 243.91 | 70.7 | 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 16,97418,95520,74020,32021,64923,034.7024,509.1026,077.8827,747.0729,523.09
Revenue (%)
Operating Cash Flow 2,1862,8433,4893,8714,0933,807.924,051.664,310.994,586.934,880.53
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 1,9362,7213,3843,7573,9603,632.943,865.484,112.904,376.164,656.27

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 16,97418,95520,74020,32021,64923,034.7024,509.1026,077.8827,747.0729,523.09
Operating Cash Flow 2,1862,8433,4893,8714,0933,807.924,051.664,310.994,586.934,880.53
Capital Expenditure -250-122-105-114-133-174.98-186.18-198.09-210.77-224.26
Free Cash Flow 1,9362,7213,3843,7573,9603,632.943,865.484,112.904,376.164,656.27
WACC
PV LFCF 3,403.233,392.093,3813,369.933,358.91
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