Discounted Cash Flow (DCF) Analysis Levered

Primerica, Inc. (PRI)

$149.03

+3.13 (+2.15%)
All numbers are in Millions, Currency in USD
Stock DCF: 452.52 | 149.03 | 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 1,689.101,899.842,052.502,217.542,709.733,053.523,440.923,877.474,369.404,923.75
Revenue (%)
Operating Cash Flow 388.52478.07485.51643.42656.96763.86860.77969.981,093.041,231.72
Operating Cash Flow (%)
Capital Expenditure -6.75-13.52-25.44-27.62-24.69-27.53-31.02-34.95-39.39-44.38
Capital Expenditure (%)
Free Cash Flow 381.77464.55460.08615.79632.27736.34829.76935.031,053.651,187.33

Weighted Average Cost Of Capital

Share price $ 149.03
Beta 1.235
Diluted Shares Outstanding 39.65
Cost of Debt
Tax Rate 26.96
After-tax Cost of Debt 1.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.531
Total Debt 2,039.61
Total Equity 5,909.34
Total Capital 7,948.94
Debt Weighting 25.66
Equity Weighting 74.34
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 1,689.101,899.842,052.502,217.542,709.733,053.523,440.923,877.474,369.404,923.75
Operating Cash Flow 388.52478.07485.51643.42656.96763.86860.77969.981,093.041,231.72
Capital Expenditure -6.75-13.52-25.44-27.62-24.69-27.53-31.02-34.95-39.39-44.38
Free Cash Flow 381.77464.55460.08615.79632.27736.34829.76935.031,053.651,187.33
WACC
PV LFCF 790.60829.76870.85913.97959.23
SUM PV LFCF 3,785.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.37
Free cash flow (t + 1) 1,211.08
Terminal Value 22,552.67
Present Value of Terminal Value 15,804.59

Intrinsic Value

Enterprise Value 19,590.40
Net Debt 1,647.11
Equity Value 17,943.30
Shares Outstanding 39.65
Equity Value Per Share 452.52