Discounted Cash Flow (DCF) Analysis Unlevered

Great-West Lifeco Inc. (GWO.TO)

$30.35

-0.55 (-1.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 112.44 | 30.35 | undervalue

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 47,00844,03244,69860,59964,44770,425.4276,958.4284,097.4591,898.74100,423.71
Revenue (%)
EBITDA 3,2253,9923,5713,7214,4235,200.105,682.496,209.626,785.667,415.13
EBITDA (%)
EBIT 2,9713,6843,1533,2833,956.124,689.915,124.975,600.386,119.906,687.62
EBIT (%)
Depreciation 254308418438466.88510.19557.52609.24665.75727.51
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 13,44413,41913,34226,32918,53122,694.7224,799.9927,100.5629,614.5432,361.73
Total Cash (%)
Account Receivables 5,1315,8306,5226,6517,0678,547.939,340.8810,207.3811,154.2712,188.99
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 2,6843,2623,3522,6983,0324,193.694,582.725,007.835,472.385,980.03
Accounts Payable (%)
Capital Expenditure -267-293-639-537.92-572.08-625.14-683.14-746.51-815.76-891.43
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 30.35
Beta 0.809
Diluted Shares Outstanding 927.68
Cost of Debt
Tax Rate 15.65
After-tax Cost of Debt 2.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.589
Total Debt 9,733
Total Equity 28,154.94
Total Capital 37,887.94
Debt Weighting 25.69
Equity Weighting 74.31
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 47,00844,03244,69860,59964,44770,425.4276,958.4284,097.4591,898.74100,423.71
EBITDA 3,2253,9923,5713,7214,4235,200.105,682.496,209.626,785.667,415.13
EBIT 2,9713,6843,1533,2833,956.124,689.915,124.975,600.386,119.906,687.62
Tax Rate 16.56%10.63%13.47%-0.13%15.65%11.23%11.23%11.23%11.23%11.23%
EBIAT 2,479.103,292.402,728.223,287.273,337.184,163.014,549.194,971.205,432.355,936.28
Depreciation 254308418438466.88510.19557.52609.24665.75727.51
Accounts Receivable --699-692-129-416-1,480.93-792.95-866.50-946.89-1,034.72
Inventories ----------
Accounts Payable -57890-6543341,161.69389.03425.12464.55507.64
Capital Expenditure -267-293-639-537.92-572.08-625.14-683.14-746.51-815.76-891.43
UFCF 2,466.103,186.401,905.222,404.363,149.983,728.824,019.664,392.544,800.015,245.28
WACC
PV UFCF 3,505.193,551.973,648.683,748.023,850.07
SUM PV UFCF 18,303.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.38
Free cash flow (t + 1) 5,350.19
Terminal Value 122,150.43
Present Value of Terminal Value 89,659.24

Intrinsic Value

Enterprise Value 107,963.17
Net Debt 3,658
Equity Value 104,305.17
Shares Outstanding 927.68
Equity Value Per Share 112.44