Discounted Cash Flow (DCF) Analysis Levered
Humana Inc. (HUM)
$476.57
-13.20 (-2.70%)
All numbers are in Millions, Currency in USD
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 | 53,767 | 56,912 | 64,888 | 77,155 | 83,064 | 92,705.12 | 103,465.27 | 115,474.33 | 128,877.27 | 143,835.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 4,051 | 2,173 | 5,284 | 5,639 | 2,262 | 5,474.73 | 6,110.18 | 6,819.37 | 7,610.89 | 8,494.27 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -526 | -612 | -736 | -964 | -1,316 | -1,116.48 | -1,246.06 | -1,390.69 | -1,552.11 | -1,732.26 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 3,525 | 1,561 | 4,548 | 4,675 | 946 | 4,358.25 | 4,864.11 | 5,428.68 | 6,058.78 | 6,762.01 |
Weighted Average Cost Of Capital
| Share price | $ 476.57 |
|---|---|
| Beta | 0.740 |
| Diluted Shares Outstanding | 129.40 |
| Cost of Debt | |
| Tax Rate | 12.55 |
| After-tax Cost of Debt | 2.22% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.025 |
| Total Debt | 12,820 |
| Total Equity | 61,666.25 |
| Total Capital | 74,486.25 |
| Debt Weighting | 17.21 |
| Equity Weighting | 82.79 |
| 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 | 53,767 | 56,912 | 64,888 | 77,155 | 83,064 | 92,705.12 | 103,465.27 | 115,474.33 | 128,877.27 | 143,835.87 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 4,051 | 2,173 | 5,284 | 5,639 | 2,262 | 5,474.73 | 6,110.18 | 6,819.37 | 7,610.89 | 8,494.27 |
| Capital Expenditure | -526 | -612 | -736 | -964 | -1,316 | -1,116.48 | -1,246.06 | -1,390.69 | -1,552.11 | -1,732.26 |
| Free Cash Flow | 3,525 | 1,561 | 4,548 | 4,675 | 946 | 4,358.25 | 4,864.11 | 5,428.68 | 6,058.78 | 6,762.01 |
| WACC | ||||||||||
| PV LFCF | 4,103.82 | 4,312.75 | 4,532.32 | 4,763.07 | 5,005.57 | |||||
| SUM PV LFCF | 22,717.54 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.20 |
| Free cash flow (t + 1) | 6,897.26 |
| Terminal Value | 164,220.36 |
| Present Value of Terminal Value | 121,563.84 |
Intrinsic Value
| Enterprise Value | 144,281.38 |
|---|---|
| Net Debt | 9,426 |
| Equity Value | 134,855.38 |
| Shares Outstanding | 129.40 |
| Equity Value Per Share | 1,042.19 |