Discounted Cash Flow (DCF) Analysis Levered

Horace Mann Educators Corporation (HMN)

$37.09

-0.31 (-0.83%)
All numbers are in Millions, Currency in USD
Stock DCF: 41.13 | 37.09 | 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 1,171.551,191.601,430.491,289.581,251.101,279.011,307.551,336.731,366.551,397.04
Revenue (%)
Operating Cash Flow --127.57259.79204.90193.73198.06202.48206.99211.61
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----193.73198.06202.48206.99211.61

Weighted Average Cost Of Capital

Share price $ 37.09
Beta 0.440
Diluted Shares Outstanding 42.20
Cost of Debt
Tax Rate 18.35
After-tax Cost of Debt 28.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.591
Total Debt 502.60
Total Equity 1,565.20
Total Capital 2,067.80
Debt Weighting 24.31
Equity Weighting 75.69
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 1,171.551,191.601,430.491,289.581,251.101,279.011,307.551,336.731,366.551,397.04
Operating Cash Flow --127.57259.79204.90193.73198.06202.48206.99211.61
Capital Expenditure ----------
Free Cash Flow -----193.73198.06202.48206.99211.61
WACC
PV LFCF 174.11159.97146.97135.03124.07
SUM PV LFCF 740.15

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.27
Free cash flow (t + 1) 215.84
Terminal Value 2,328.41
Present Value of Terminal Value 1,365.12

Intrinsic Value

Enterprise Value 2,105.27
Net Debt 369.60
Equity Value 1,735.67
Shares Outstanding 42.20
Equity Value Per Share 41.13