Discounted Cash Flow (DCF) Analysis Levered

Horace Mann Educators Corporation (HMN)

$28.95

+0.28 (+0.98%)

All numbers are in Millions, Currency in USD

Stock DCF: -2.28 | 28.95 | overvalue

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	1,191.60	1,430.50	1,310.40	1,330.10	39.20	30.98	24.48	19.35	15.29	12.08
Revenue (%)
Operating Cash Flow	0.20	127.57	259.79	204.90	171.50	29.84	23.58	18.64	14.73	11.64
Operating Cash Flow (%)
Capital Expenditure	-0.19	-477.46	98.46	2.30	35.70	4.05	3.20	2.53	2	1.58
Capital Expenditure (%)
Free Cash Flow	0.01	-349.88	358.25	207.20	207.20	33.89	26.78	21.17	16.73	13.22

Weighted Average Cost Of Capital

Share price	$ 28.95
Beta	0.410
Diluted Shares Outstanding	41.80
Cost of Debt
Tax Rate	-20.00
After-tax Cost of Debt	3.90%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.672
Total Debt	498
Total Equity	1,210.11
Total Capital	1,708.11
Debt Weighting	29.16
Equity Weighting	70.84
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	1,191.60	1,430.50	1,310.40	1,330.10	39.20	30.98	24.48	19.35	15.29	12.08
Operating Cash Flow	0.20	127.57	259.79	204.90	171.50	29.84	23.58	18.64	14.73	11.64
Capital Expenditure	-0.19	-477.46	98.46	2.30	35.70	4.05	3.20	2.53	2	1.58
Free Cash Flow	0.01	-349.88	358.25	207.20	207.20	33.89	26.78	21.17	16.73	13.22
WACC
PV LFCF						32.02	23.90	17.84	13.32	9.94
SUM PV LFCF										97.02

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.86
Free cash flow (t + 1)	13.48
Terminal Value	349.29
Present Value of Terminal Value	262.74

Intrinsic Value

Enterprise Value	359.76
Net Debt	455.20
Equity Value	-95.44
Shares Outstanding	41.80
Equity Value Per Share	-2.28