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 59,68962,99264,80757,03370,93474,621.3278,500.3382,580.9786,873.7391,389.64
Revenue (%)
Operating Cash Flow 13,44521,66419,6258,3689,81217,267.9418,165.5719,109.8620,103.2421,148.25
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----17,267.9418,165.5719,109.8620,103.2421,148.25

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 59,68962,99264,80757,03370,93474,621.3278,500.3382,580.9786,873.7391,389.64
Operating Cash Flow 13,44521,66419,6258,3689,81217,267.9418,165.5719,109.8620,103.2421,148.25
Capital Expenditure ----------
Free Cash Flow -----17,267.9418,165.5719,109.8620,103.2421,148.25
WACC
PV LFCF 15,847.9615,300.8214,772.5714,262.5613,770.16
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