Discounted Cash Flow (DCF) Analysis Levered

Primerica, Inc. (PRI)

$187.315

-3.79 (-1.99%)

All numbers are in Millions, Currency in USD

Stock DCF: 364.00 | 187.315 | 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	1,899.84	2,052.50	2,217.54	2,709.73	2,720.13	2,983	3,271.27	3,587.41	3,934.09	4,314.27
Revenue (%)
Operating Cash Flow	478.07	485.51	643.42	656.96	757.67	775.17	850.08	932.23	1,022.32	1,121.12
Operating Cash Flow (%)
Capital Expenditure	-13.52	-25.44	-27.62	-24.69	-25.81	-30.17	-33.08	-36.28	-39.78	-43.63
Capital Expenditure (%)
Free Cash Flow	464.55	460.08	615.79	632.27	731.86	745.01	817	895.96	982.54	1,077.49

Weighted Average Cost Of Capital

Share price	$ 187.315
Beta	1.177
Diluted Shares Outstanding	38.11
Cost of Debt
Tax Rate	25.47
After-tax Cost of Debt	0.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.316
Total Debt	2,083.37
Total Equity	7,137.83
Total Capital	9,221.19
Debt Weighting	22.59
Equity Weighting	77.41
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	1,899.84	2,052.50	2,217.54	2,709.73	2,720.13	2,983	3,271.27	3,587.41	3,934.09	4,314.27
Operating Cash Flow	478.07	485.51	643.42	656.96	757.67	775.17	850.08	932.23	1,022.32	1,121.12
Capital Expenditure	-13.52	-25.44	-27.62	-24.69	-25.81	-30.17	-33.08	-36.28	-39.78	-43.63
Free Cash Flow	464.55	460.08	615.79	632.27	731.86	745.01	817	895.96	982.54	1,077.49
WACC
PV LFCF						688.48	697.73	707.11	716.61	726.23
SUM PV LFCF										3,536.16

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.21
Free cash flow (t + 1)	1,099.04
Terminal Value	17,697.91
Present Value of Terminal Value	11,928.48

Intrinsic Value

Enterprise Value	15,464.63
Net Debt	1,594.13
Equity Value	13,870.51
Shares Outstanding	38.11
Equity Value Per Share	364.00