Discounted Cash Flow (DCF) Analysis Levered

Prudential Financial, Inc. (PRU)

$78.68

-3.77 (-4.57%)

All numbers are in Millions, Currency in USD

Stock DCF: 506.42 | 78.68 | 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	62,992	64,807	57,033	70,934	60,050	60,037.31	60,024.62	60,011.94	59,999.25	59,986.57
Revenue (%)
Operating Cash Flow	21,664	19,625	8,368	9,812	5,158	12,219.78	12,217.19	12,214.61	12,212.03	12,209.45
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	12,219.78	12,217.19	12,214.61	12,212.03	12,209.45

Weighted Average Cost Of Capital

Share price	$ 78.68
Beta	1.401
Diluted Shares Outstanding	390.10
Cost of Debt
Tax Rate	19.03
After-tax Cost of Debt	4.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.114
Total Debt	20,683
Total Equity	30,693.07
Total Capital	51,376.07
Debt Weighting	40.26
Equity Weighting	59.74
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	62,992	64,807	57,033	70,934	60,050	60,037.31	60,024.62	60,011.94	59,999.25	59,986.57
Operating Cash Flow	21,664	19,625	8,368	9,812	5,158	12,219.78	12,217.19	12,214.61	12,212.03	12,209.45
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	12,219.78	12,217.19	12,214.61	12,212.03	12,209.45
WACC
PV LFCF						8,444.81	7,841.57	7,281.43	6,761.30	6,278.32
SUM PV LFCF										49,198.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.67
Free cash flow (t + 1)	12,453.64
Terminal Value	219,640.89
Present Value of Terminal Value	151,788.77

Intrinsic Value

Enterprise Value	200,986.84
Net Debt	3,432
Equity Value	197,554.84
Shares Outstanding	390.10
Equity Value Per Share	506.42