Discounted Cash Flow (DCF) Analysis Unlevered

Chubb Limited (CB)

$214.5

+0.74 (+0.35%)
All numbers are in Millions, Currency in USD
Stock DCF: 418.98 | 214.5 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 32,71734,23035,99440,96343,12446,235.2349,570.9253,147.2756,981.6461,092.65
Revenue (%)
EBITDA 5,6375,5544,45210,1037,4238,109.728,694.819,322.119,994.6610,715.74
EBITDA (%)
EBIT 5,2985,2494,1629,8167,1387,731.118,288.888,886.909,528.0510,215.46
EBIT (%)
Depreciation 339305290287285378.61405.93435.21466.61500.27
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 82,7331,5371,7471,6592,01225,053.4026,860.9028,798.8130,876.5433,104.16
Total Cash (%)
Account Receivables 26,06825,53826,07228,68830,83434,052.5536,509.3139,143.3241,967.3644,995.14
Account Receivables (%)
Inventories 202211.34222.23252.91266.25285.46306.06328.14351.81377.20
Inventories (%)
Accounts Payable 18,32717,95720,76022,24723,38225,400.0927,232.6029,197.3331,303.8033,562.25
Accounts Payable (%)
Capital Expenditure 9801,3909071,4211,406.381,507.851,616.631,733.271,858.311,992.38
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 214.5
Beta 0.648
Diluted Shares Outstanding 423.53
Cost of Debt
Tax Rate 19.11
After-tax Cost of Debt 3.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.525
Total Debt 14,877
Total Equity 90,846.64
Total Capital 105,723.64
Debt Weighting 14.07
Equity Weighting 85.93
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 32,71734,23035,99440,96343,12446,235.2349,570.9253,147.2756,981.6461,092.65
EBITDA 5,6375,5544,45210,1037,4238,109.728,694.819,322.119,994.6610,715.74
EBIT 5,2985,2494,1629,8167,1387,731.118,288.888,886.909,528.0510,215.46
Tax Rate 14.92%15.15%15.11%13.01%19.11%15.46%15.46%15.46%15.46%15.46%
EBIAT 4,507.344,4543,5338,5395,774.096,535.897,007.437,512.998,055.028,636.16
Depreciation 339305290287285378.61405.93435.21466.61500.27
Accounts Receivable -530-534-2,616-2,146-3,218.55-2,456.76-2,634.01-2,824.04-3,027.78
Inventories --9.34-10.89-30.68-13.34-19.21-20.60-22.08-23.67-25.38
Accounts Payable --3702,8031,4871,1352,018.091,832.521,964.732,106.472,258.45
Capital Expenditure 9801,3909071,4211,406.381,507.851,616.631,733.271,858.311,992.38
UFCF 5,826.346,299.666,988.119,087.326,441.127,202.678,385.158,990.119,638.7110,334.10
WACC
PV UFCF 6,737.767,337.627,359.227,380.887,402.60
SUM PV UFCF 36,218.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.90
Free cash flow (t + 1) 10,540.78
Terminal Value 215,118.05
Present Value of Terminal Value 154,094.92

Intrinsic Value

Enterprise Value 190,313.01
Net Debt 12,865
Equity Value 177,448.01
Shares Outstanding 423.53
Equity Value Per Share 418.98