Discounted Cash Flow (DCF) Analysis Levered

Sun Life Financial Inc. (SLF.TO)

$61.92

+0.83 (+1.36%)
All numbers are in Millions, Currency in USD
Stock DCF: 133.01 | 61.92 | 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 29,33426,99739,67943,33735,75538,502.0841,460.2244,645.6448,075.7951,769.48
Revenue (%)
Operating Cash Flow 1,9843,8342,5477,253-1,8572,997.523,227.823,475.813,742.864,030.43
Operating Cash Flow (%)
Capital Expenditure -182-85-114-158-81-139.66-150.39-161.95-174.39-187.79
Capital Expenditure (%)
Free Cash Flow 1,8023,7492,4337,095-1,9382,857.853,077.423,313.863,568.473,842.64

Weighted Average Cost Of Capital

Share price $ 61.92
Beta 0.953
Diluted Shares Outstanding 585
Cost of Debt
Tax Rate 14.26
After-tax Cost of Debt 2.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.359
Total Debt 10,207
Total Equity 36,223.20
Total Capital 46,430.20
Debt Weighting 21.98
Equity Weighting 78.02
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 29,33426,99739,67943,33735,75538,502.0841,460.2244,645.6448,075.7951,769.48
Operating Cash Flow 1,9843,8342,5477,253-1,8572,997.523,227.823,475.813,742.864,030.43
Capital Expenditure -182-85-114-158-81-139.66-150.39-161.95-174.39-187.79
Free Cash Flow 1,8023,7492,4337,095-1,9382,857.853,077.423,313.863,568.473,842.64
WACC
PV LFCF 2,687.472,721.412,755.782,790.592,825.83
SUM PV LFCF 13,781.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.34
Free cash flow (t + 1) 3,919.49
Terminal Value 90,310.81
Present Value of Terminal Value 66,413.52

Intrinsic Value

Enterprise Value 80,194.59
Net Debt 2,381
Equity Value 77,813.59
Shares Outstanding 585
Equity Value Per Share 133.01