Discounted Cash Flow (DCF) Analysis Levered

Loews Corporation (L)

$55.79

+1.23 (+2.25%)

All numbers are in Millions, Currency in USD

Stock DCF: 145.81 | 55.79 | 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	14,066	14,931	13,667	13,742	14,044	14,059.11	14,074.24	14,089.38	14,104.54	14,119.72
Revenue (%)
Operating Cash Flow	4,222	1,741	1,745	2,623	3,314	2,731.09	2,734.02	2,736.97	2,739.91	2,742.86
Operating Cash Flow (%)
Capital Expenditure	-995	-1,041	-710	-482	-660	-771.79	-772.62	-773.45	-774.28	-775.11
Capital Expenditure (%)
Free Cash Flow	3,227	700	1,035	2,141	2,654	1,959.30	1,961.41	1,963.52	1,965.63	1,967.75

Weighted Average Cost Of Capital

Share price	$ 55.79
Beta	0.828
Diluted Shares Outstanding	243.28
Cost of Debt
Tax Rate	26.72
After-tax Cost of Debt	3.66%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.418
Total Debt	2,634
Total Equity	13,572.59
Total Capital	16,206.59
Debt Weighting	16.25
Equity Weighting	83.75
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	14,066	14,931	13,667	13,742	14,044	14,059.11	14,074.24	14,089.38	14,104.54	14,119.72
Operating Cash Flow	4,222	1,741	1,745	2,623	3,314	2,731.09	2,734.02	2,736.97	2,739.91	2,742.86
Capital Expenditure	-995	-1,041	-710	-482	-660	-771.79	-772.62	-773.45	-774.28	-775.11
Free Cash Flow	3,227	700	1,035	2,141	2,654	1,959.30	1,961.41	1,963.52	1,965.63	1,967.75
WACC
PV LFCF						1,505.40	1,410.94	1,322.40	1,239.42	1,161.65
SUM PV LFCF										8,090.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.81
Free cash flow (t + 1)	2,007.10
Terminal Value	41,727.67
Present Value of Terminal Value	30,016.81

Intrinsic Value

Enterprise Value	38,107.61
Net Debt	2,634
Equity Value	35,473.61
Shares Outstanding	243.28
Equity Value Per Share	145.81