Discounted Cash Flow (DCF) Analysis Unlevered

Horace Mann Educators Corporation (HMN)

$37.6

+0.47 (+1.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 42.78 | 37.6 | 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 1,171.551,191.601,430.491,289.581,251.101,279.011,307.551,336.731,366.551,397.04
Revenue (%)
EBITDA 100.6332.54267.66198.21371.60192.12196.40200.79205.27209.85
EBITDA (%)
EBIT 100.6332.54252.03174.80353.20173.45177.32181.27185.32189.45
EBIT (%)
Depreciation --15.6323.4218.4018.6719.0919.5119.9520.39
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 8,359.987,934.076,179.166,713.916,722.507,339.847,503.617,671.037,842.188,017.16
Total Cash (%)
Account Receivables ----------
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 37.6
Beta 0.440
Diluted Shares Outstanding 42.20
Cost of Debt
Tax Rate 18.35
After-tax Cost of Debt 28.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.769
Total Debt 502.60
Total Equity 1,586.72
Total Capital 2,089.32
Debt Weighting 24.06
Equity Weighting 75.94
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 1,171.551,191.601,430.491,289.581,251.101,279.011,307.551,336.731,366.551,397.04
EBITDA 100.6332.54267.66198.21371.60192.12196.40200.79205.27209.85
EBIT 100.6332.54252.03174.80353.20173.45177.32181.27185.32189.45
Tax Rate -91.08%6.11%21.99%16.46%18.35%-5.63%-5.63%-5.63%-5.63%-5.63%
EBIAT 192.2930.55196.59146.03288.38183.21187.30191.48195.75200.12
Depreciation --15.6323.4218.4018.6719.0919.5119.9520.39
Accounts Receivable ----------
Inventories ----------
Accounts Payable ----------
Capital Expenditure ----------
UFCF -----201.88206.39210.99215.70220.51
WACC
PV UFCF 181.31166.46152.83140.31128.82
SUM PV UFCF 769.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 11.35
Free cash flow (t + 1) 224.92
Terminal Value 2,405.61
Present Value of Terminal Value 1,405.32

Intrinsic Value

Enterprise Value 2,175.04
Net Debt 369.60
Equity Value 1,805.44
Shares Outstanding 42.20
Equity Value Per Share 42.78