Discounted Cash Flow (DCF) Analysis Levered
Radian Group Inc. (RDN)
$22.1
+0.21 (+0.96%)
All numbers are in Millions, Currency in USD
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 | 1,273.01 | 1,526.96 | 1,438.62 | 1,329.93 | 1,190.73 | 1,179.24 | 1,167.87 | 1,156.60 | 1,145.44 | 1,134.39 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 677.79 | 694.43 | 658.43 | 557.11 | 388.30 | 516.48 | 511.50 | 506.57 | 501.68 | 496.84 |
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 | 651.78 | 666.80 | 641.42 | 544.51 | 370.63 | 498.87 | 494.06 | 489.30 | 484.58 | 479.90 |
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 | 1,273.01 | 1,526.96 | 1,438.62 | 1,329.93 | 1,190.73 | 1,179.24 | 1,167.87 | 1,156.60 | 1,145.44 | 1,134.39 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 677.79 | 694.43 | 658.43 | 557.11 | 388.30 | 516.48 | 511.50 | 506.57 | 501.68 | 496.84 |
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 | 651.78 | 666.80 | 641.42 | 544.51 | 370.63 | 498.87 | 494.06 | 489.30 | 484.58 | 479.90 |
WACC | ||||||||||
PV LFCF | 457.77 | 415.99 | 378.03 | 343.54 | 312.19 | |||||
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 |