Discounted Cash Flow (DCF) Analysis Levered

Reinsurance Group of America, Incor... (RZB)

$25.3611

+0.03 (+0.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,811.78 | 25.3611 | 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 12,875.6614,30014,59616,65816,25817,268.3618,341.5019,481.3420,692.0121,977.92
Revenue (%)
Operating Cash Flow 1,581.122,3073,3224,1821,3432,919.673,101.113,293.833,498.523,715.94
Operating Cash Flow (%)
Capital Expenditure -28.89-34-28-19-25-31.84-33.81-35.92-38.15-40.52
Capital Expenditure (%)
Free Cash Flow 1,552.232,2733,2944,1631,3182,887.833,067.293,257.913,460.383,675.42

Weighted Average Cost Of Capital

Share price $ 25.3,611
Beta 0.887
Diluted Shares Outstanding 67.70
Cost of Debt
Tax Rate 25.03
After-tax Cost of Debt 3.22%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.488
Total Debt 4,361
Total Equity 1,716.95
Total Capital 6,077.95
Debt Weighting 71.75
Equity Weighting 28.25
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 12,875.6614,30014,59616,65816,25817,268.3618,341.5019,481.3420,692.0121,977.92
Operating Cash Flow 1,581.122,3073,3224,1821,3432,919.673,101.113,293.833,498.523,715.94
Capital Expenditure -28.89-34-28-19-25-31.84-33.81-35.92-38.15-40.52
Free Cash Flow 1,552.232,2733,2944,1631,3182,887.833,067.293,257.913,460.383,675.42
WACC
PV LFCF 2,757.932,797.562,837.762,878.532,919.89
SUM PV LFCF 14,191.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.71
Free cash flow (t + 1) 3,748.93
Terminal Value 138,336.90
Present Value of Terminal Value 109,899.89

Intrinsic Value

Enterprise Value 124,091.55
Net Debt 1,434
Equity Value 122,657.55
Shares Outstanding 67.70
Equity Value Per Share 1,811.78