Discounted Cash Flow (DCF) Analysis Levered

Selective Insurance Group, Inc. (SIGI)

$92.61

-2.47 (-2.60%)
All numbers are in Millions, Currency in USD
Stock DCF: 297.79 | 92.61 | undervalue

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 2,469.982,586.082,846.492,922.273,379.163,658.513,960.954,288.394,642.915,026.72
Revenue (%)
Operating Cash Flow 370.73454.94477.49554.05771.42667.05722.20781.90846.54916.52
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 356.66438.83446.51531.98749.26640.04692.95750.23812.25879.40

Weighted Average Cost Of Capital

Share price $ 92.61
Beta 0.599
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 6.429
Total Debt 506.05
Total Equity 5,621.43
Total Capital 6,127.48
Debt Weighting 8.26
Equity Weighting 91.74
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 2,469.982,586.082,846.492,922.273,379.163,658.513,960.954,288.394,642.915,026.72
Operating Cash Flow 370.73454.94477.49554.05771.42667.05722.20781.90846.54916.52
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 356.66438.83446.51531.98749.26640.04692.95750.23812.25879.40
WACC
PV LFCF 602.22613.48624.94636.63648.53
SUM PV LFCF 3,125.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.28
Free cash flow (t + 1) 896.99
Terminal Value 20,957.67
Present Value of Terminal Value 15,455.58

Intrinsic Value

Enterprise Value 18,581.37
Net Debt 505.60
Equity Value 18,075.78
Shares Outstanding 60.70
Equity Value Per Share 297.79