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
Stock DCF: 216.89 | 70.98 | undervalue

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 18,95520,74020,32021,64921,85422,666.9323,510.0924,384.6325,291.6926,232.49
Revenue (%)
Operating Cash Flow 2,8433,4893,8714,0934,0083,994.714,143.304,297.434,457.284,623.08
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 2,7213,3843,7573,9603,8333,852.993,996.324,144.974,299.164,459.08

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 18,95520,74020,32021,64921,85422,666.9323,510.0924,384.6325,291.6926,232.49
Operating Cash Flow 2,8433,4893,8714,0934,0083,994.714,143.304,297.434,457.284,623.08
Capital Expenditure -122-105-114-133-175-141.72-146.99-152.45-158.13-164.01
Free Cash Flow 2,7213,3843,7573,9603,8333,852.993,996.324,144.974,299.164,459.08
WACC
PV LFCF 3,595.213,479.473,367.463,259.043,154.12
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