Discounted Cash Flow (DCF) Analysis Unlevered
American International Group, Inc. (AIG)
$62.75
-0.35 (-0.55%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 49,930 | 47,481 | 49,792 | 43,839 | 51,885 | 52,709.99 | 53,548.09 | 54,399.53 | 55,264.50 | 56,143.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 6,484 | 6,819 | 10,937 | -1,827 | 17,502 | 8,315.30 | 8,447.52 | 8,581.84 | 8,718.29 | 8,856.91 |
| EBITDA (%) | ||||||||||
| EBIT | 2,610 | 1,457 | 5,931 | -5,947 | 12,869 | 3,314.92 | 3,367.62 | 3,421.17 | 3,475.57 | 3,530.83 |
| EBIT (%) | ||||||||||
| Depreciation | 3,874 | 5,362 | 5,006 | 4,120 | 4,633 | 5,000.39 | 5,079.89 | 5,160.67 | 5,242.72 | 5,326.08 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Total Cash | 251,740 | 241,938 | 267,172 | 292,526 | 292,757 | 293,259.87 | 297,922.80 | 302,659.87 | 307,472.25 | 312,361.16 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 10,248 | 11,011 | 10,274 | 11,333 | 12,409 | 12,030.18 | 12,221.46 | 12,415.78 | 12,613.20 | 12,813.75 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 62.75 |
|---|---|
| Beta | 1.209 |
| Diluted Shares Outstanding | 864.88 |
| Cost of Debt | |
| Tax Rate | 22.41 |
| After-tax Cost of Debt | 3.36% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.212 |
| Total Debt | 30,163 |
| Total Equity | 54,271.53 |
| Total Capital | 84,434.53 |
| Debt Weighting | 35.72 |
| Equity Weighting | 64.28 |
| Wacc |
Build Up Free Cash
Year A/P | 2017 Actual | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Projected | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected |
| Revenue | 49,930 | 47,481 | 49,792 | 43,839 | 51,885 | 52,709.99 | 53,548.09 | 54,399.53 | 55,264.50 | 56,143.22 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 6,484 | 6,819 | 10,937 | -1,827 | 17,502 | 8,315.30 | 8,447.52 | 8,581.84 | 8,718.29 | 8,856.91 |
| EBIT | 2,610 | 1,457 | 5,931 | -5,947 | 12,869 | 3,314.92 | 3,367.62 | 3,421.17 | 3,475.57 | 3,530.83 |
| Tax Rate | 515.01% | 102.33% | 36.67% | 18.50% | 22.41% | 138.98% | 138.98% | 138.98% | 138.98% | 138.98% |
| EBIAT | -10,831.68 | -34.02 | 3,755.81 | -4,846.97 | 9,985.47 | -1,292.29 | -1,312.84 | -1,333.71 | -1,354.92 | -1,376.46 |
| Depreciation | 3,874 | 5,362 | 5,006 | 4,120 | 4,633 | 5,000.39 | 5,079.89 | 5,160.67 | 5,242.72 | 5,326.08 |
| Accounts Receivable | - | -763 | 737 | -1,059 | -1,076 | 378.82 | -191.28 | -194.33 | -197.41 | -200.55 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| UFCF | - | - | - | - | - | 4,086.92 | 3,575.77 | 3,632.63 | 3,690.39 | 3,749.07 |
| WACC | ||||||||||
| PV UFCF | 3,815.27 | 3,116.23 | 2,955.35 | 2,802.79 | 2,658.10 | |||||
| SUM PV UFCF | 15,347.74 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.12 |
| Free cash flow (t + 1) | 3,824.05 |
| Terminal Value | 74,688.48 |
| Present Value of Terminal Value | 52,954.25 |
Intrinsic Value
| Enterprise Value | 68,301.98 |
|---|---|
| Net Debt | 27,965 |
| Equity Value | 40,336.98 |
| Shares Outstanding | 864.88 |
| Equity Value Per Share | 46.64 |