Discounted Cash Flow (DCF) Analysis Levered

Radian Group Inc. (RDN)

$22.1

+0.21 (+0.96%)
All numbers are in Millions, Currency in USD
Stock DCF: 34.30 | 22.1 | 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 1,273.011,526.961,438.621,329.931,190.731,179.241,167.871,156.601,145.441,134.39
Revenue (%)
Operating Cash Flow 677.79694.43658.43557.11388.30516.48511.50506.57501.68496.84
Operating Cash Flow (%)
Capital Expenditure -26.01-27.63-17.02-12.60-17.67-17.61-17.44-17.27-17.11-16.94
Capital Expenditure (%)
Free Cash Flow 651.78666.80641.42544.51370.63498.87494.06489.30484.58479.90

Weighted Average Cost Of Capital

Share price $ 22.1
Beta 1.162
Diluted Shares Outstanding 190.26
Cost of Debt
Tax Rate 51.75
After-tax Cost of Debt 2.41%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.981
Total Debt -
Total Equity 4,204.81
Total Capital 4,204.81
Debt Weighting 0.00
Equity Weighting 100.00
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 1,273.011,526.961,438.621,329.931,190.731,179.241,167.871,156.601,145.441,134.39
Operating Cash Flow 677.79694.43658.43557.11388.30516.48511.50506.57501.68496.84
Capital Expenditure -26.01-27.63-17.02-12.60-17.67-17.61-17.44-17.27-17.11-16.94
Free Cash Flow 651.78666.80641.42544.51370.63498.87494.06489.30484.58479.90
WACC
PV LFCF 457.77415.99378.03343.54312.19
SUM PV LFCF 1,907.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.98
Free cash flow (t + 1) 489.50
Terminal Value 7,012.89
Present Value of Terminal Value 4,562.08

Intrinsic Value

Enterprise Value 6,469.60
Net Debt -56.18
Equity Value 6,525.79
Shares Outstanding 190.26
Equity Value Per Share 34.30