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
Stock DCF: 46.64 | 62.75 | overvalue

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 49,93047,48149,79243,83951,88552,709.9953,548.0954,399.5355,264.5056,143.22
Revenue (%)
EBITDA 6,4846,81910,937-1,82717,5028,315.308,447.528,581.848,718.298,856.91
EBITDA (%)
EBIT 2,6101,4575,931-5,94712,8693,314.923,367.623,421.173,475.573,530.83
EBIT (%)
Depreciation 3,8745,3625,0064,1204,6335,000.395,079.895,160.675,242.725,326.08
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 251,740241,938267,172292,526292,757293,259.87297,922.80302,659.87307,472.25312,361.16
Total Cash (%)
Account Receivables 10,24811,01110,27411,33312,40912,030.1812,221.4612,415.7812,613.2012,813.75
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 49,93047,48149,79243,83951,88552,709.9953,548.0954,399.5355,264.5056,143.22
EBITDA 6,4846,81910,937-1,82717,5028,315.308,447.528,581.848,718.298,856.91
EBIT 2,6101,4575,931-5,94712,8693,314.923,367.623,421.173,475.573,530.83
Tax Rate 515.01%102.33%36.67%18.50%22.41%138.98%138.98%138.98%138.98%138.98%
EBIAT -10,831.68-34.023,755.81-4,846.979,985.47-1,292.29-1,312.84-1,333.71-1,354.92-1,376.46
Depreciation 3,8745,3625,0064,1204,6335,000.395,079.895,160.675,242.725,326.08
Accounts Receivable --763737-1,059-1,076378.82-191.28-194.33-197.41-200.55
Inventories ----------
Accounts Payable ----------
Capital Expenditure ----------
UFCF -----4,086.923,575.773,632.633,690.393,749.07
WACC
PV UFCF 3,815.273,116.232,955.352,802.792,658.10
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