Discounted Cash Flow (DCF) Analysis Levered
Selective Insurance Group, Inc. (SIGI)
$100.9
+6.18 (+6.52%)
All numbers are in Millions, Currency in USD
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 | 2,469.98 | 2,586.08 | 2,846.49 | 2,922.27 | 3,379.16 | 3,658.51 | 3,960.95 | 4,288.39 | 4,642.91 | 5,026.72 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 370.73 | 454.94 | 477.49 | 554.05 | 771.42 | 667.05 | 722.20 | 781.90 | 846.54 | 916.52 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -14.07 | -16.11 | -30.99 | -22.06 | -22.16 | -27.02 | -29.25 | -31.67 | -34.28 | -37.12 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 356.66 | 438.83 | 446.51 | 531.98 | 749.26 | 640.04 | 692.95 | 750.23 | 812.25 | 879.40 |
Weighted Average Cost Of Capital
Share price | $ 100.9 |
---|---|
Beta | 0.632 |
Diluted Shares Outstanding | 60.70 |
Cost of Debt | |
Tax Rate | 20.08 |
After-tax Cost of Debt | 4.60% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 6.517 |
Total Debt | 506.05 |
Total Equity | 6,124.63 |
Total Capital | 6,630.68 |
Debt Weighting | 7.63 |
Equity Weighting | 92.37 |
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 | 2,469.98 | 2,586.08 | 2,846.49 | 2,922.27 | 3,379.16 | 3,658.51 | 3,960.95 | 4,288.39 | 4,642.91 | 5,026.72 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 370.73 | 454.94 | 477.49 | 554.05 | 771.42 | 667.05 | 722.20 | 781.90 | 846.54 | 916.52 |
Capital Expenditure | -14.07 | -16.11 | -30.99 | -22.06 | -22.16 | -27.02 | -29.25 | -31.67 | -34.28 | -37.12 |
Free Cash Flow | 356.66 | 438.83 | 446.51 | 531.98 | 749.26 | 640.04 | 692.95 | 750.23 | 812.25 | 879.40 |
WACC | ||||||||||
PV LFCF | 441.87 | 449.75 | 457.77 | 465.93 | 474.24 | |||||
SUM PV LFCF | 3,117.77 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.37 |
Free cash flow (t + 1) | 896.99 |
Terminal Value | 20,526.05 |
Present Value of Terminal Value | 15,073.34 |
Intrinsic Value
Enterprise Value | 18,191.11 |
---|---|
Net Debt | 505.60 |
Equity Value | 17,685.52 |
Shares Outstanding | 60.70 |
Equity Value Per Share | 291.36 |