Discounted Cash Flow (DCF) Analysis Levered

Prudential Financial, Inc. (PRU)

$101.82

-0.04 (-0.04%)

All numbers are in Millions, Currency in USD

Stock DCF: 689.64 | 101.82 | 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	59,689	62,992	64,807	57,033	70,934	74,621.32	78,500.33	82,580.97	86,873.73	91,389.64
Revenue (%)
Operating Cash Flow	13,445	21,664	19,625	8,368	9,812	17,267.94	18,165.57	19,109.86	20,103.24	21,148.25
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	17,267.94	18,165.57	19,109.86	20,103.24	21,148.25

Weighted Average Cost Of Capital

Share price	$ 101.82
Beta	1.420
Diluted Shares Outstanding	390.10
Cost of Debt
Tax Rate	17.66
After-tax Cost of Debt	6.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.332
Total Debt	19,618
Total Equity	39,719.98
Total Capital	59,337.98
Debt Weighting	33.06
Equity Weighting	66.94
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	59,689	62,992	64,807	57,033	70,934	74,621.32	78,500.33	82,580.97	86,873.73	91,389.64
Operating Cash Flow	13,445	21,664	19,625	8,368	9,812	17,267.94	18,165.57	19,109.86	20,103.24	21,148.25
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	17,267.94	18,165.57	19,109.86	20,103.24	21,148.25
WACC
PV LFCF						15,847.96	15,300.82	14,772.57	14,262.56	13,770.16
SUM PV LFCF										73,954.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.96
Free cash flow (t + 1)	21,571.22
Terminal Value	309,931.27
Present Value of Terminal Value	201,804.07

Intrinsic Value

Enterprise Value	275,758.15
Net Debt	6,730
Equity Value	269,028.15
Shares Outstanding	390.10
Equity Value Per Share	689.64