Discounted Cash Flow (DCF) Analysis Levered
Radian Group Inc. (RDN)
$25.83
+0.40 (+1.57%)
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 | $ 25.83 |
---|---|
Beta | 1.056 |
Diluted Shares Outstanding | 190.26 |
Cost of Debt | |
Tax Rate | 22.02 |
After-tax Cost of Debt | 4.20% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.239 |
Total Debt | 1,569.33 |
Total Equity | 4,914.49 |
Total Capital | 6,483.82 |
Debt Weighting | 24.20 |
Equity Weighting | 75.80 |
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 | 461.83 | 423.42 | 388.20 | 355.91 | 326.31 | |||||
SUM PV LFCF | 1,955.68 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 8.02 |
Free cash flow (t + 1) | 489.50 |
Terminal Value | 8,131.23 |
Present Value of Terminal Value | 5,528.85 |
Intrinsic Value
Enterprise Value | 7,484.54 |
---|---|
Net Debt | 1,513.14 |
Equity Value | 5,971.40 |
Shares Outstanding | 190.26 |
Equity Value Per Share | 31.38 |