Discounted Cash Flow (DCF) Analysis Unlevered
Loews Corporation (L)
$56.02
+0.76 (+1.38%)
All numbers are in Millions, Currency in USD
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 | 14,066 | 14,931 | 13,667 | 13,742 | 14,044 | 14,059.11 | 14,074.24 | 14,089.38 | 14,104.54 | 14,119.72 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 2,250 | 2,714 | 145 | 2,996 | 1,161 | 1,836.19 | 1,838.17 | 1,840.15 | 1,842.13 | 1,844.11 |
| EBITDA (%) | ||||||||||
| EBIT | 1,338 | 1,771 | -589 | 2,481 | 1,290 | 1,245.73 | 1,247.07 | 1,248.42 | 1,249.76 | 1,251.10 |
| EBIT (%) | ||||||||||
| Depreciation | 912 | 943 | 734 | 515 | -129 | 590.46 | 591.09 | 591.73 | 592.37 | 593 |
| 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 | 43,816 | 47,151 | 49,756 | 49,854 | 2,810 | 38,638.63 | 38,680.20 | 38,721.82 | 38,763.48 | 38,805.19 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 7,566 | 7,280 | 7,452 | 8,896 | 7,787.69 | 7,796.07 | 7,804.45 | 7,812.85 | 7,821.26 | 7,829.67 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 42 | 108 | 92 | 90 | 82.51 | 82.60 | 82.69 | 82.78 | 82.86 | 82.95 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -995 | -1,041 | -710 | -482 | -660 | -771.79 | -772.62 | -773.45 | -774.28 | -775.11 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 56.02 |
|---|---|
| Beta | 0.828 |
| Diluted Shares Outstanding | 243.28 |
| Cost of Debt | |
| Tax Rate | 26.72 |
| After-tax Cost of Debt | 3.66% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 7.515 |
| Total Debt | 2,634 |
| Total Equity | 13,628.55 |
| Total Capital | 16,262.55 |
| Debt Weighting | 16.20 |
| Equity Weighting | 83.80 |
| 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 | 14,066 | 14,931 | 13,667 | 13,742 | 14,044 | 14,059.11 | 14,074.24 | 14,089.38 | 14,104.54 | 14,119.72 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 2,250 | 2,714 | 145 | 2,996 | 1,161 | 1,836.19 | 1,838.17 | 1,840.15 | 1,842.13 | 1,844.11 |
| EBIT | 1,338 | 1,771 | -589 | 2,481 | 1,290 | 1,245.73 | 1,247.07 | 1,248.42 | 1,249.76 | 1,251.10 |
| Tax Rate | 23.74% | 16.71% | 36.41% | 27.68% | 26.72% | 26.25% | 26.25% | 26.25% | 26.25% | 26.25% |
| EBIAT | 1,020.35 | 1,475.04 | -374.56 | 1,794.23 | 945.31 | 918.70 | 919.69 | 920.68 | 921.67 | 922.66 |
| Depreciation | 912 | 943 | 734 | 515 | -129 | 590.46 | 591.09 | 591.73 | 592.37 | 593 |
| Accounts Receivable | - | 286 | -172 | -1,444 | 1,108.31 | -8.38 | -8.39 | -8.40 | -8.41 | -8.42 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | 66 | -16 | -2 | -7.49 | 0.09 | 0.09 | 0.09 | 0.09 | 0.09 |
| Capital Expenditure | -995 | -1,041 | -710 | -482 | -660 | -771.79 | -772.62 | -773.45 | -774.28 | -775.11 |
| UFCF | 937.35 | 1,729.04 | -538.56 | 381.23 | 1,257.14 | 729.09 | 729.87 | 730.66 | 731.44 | 732.23 |
| WACC | ||||||||||
| PV UFCF | 682.09 | 638.81 | 598.28 | 560.31 | 524.76 | |||||
| SUM PV UFCF | 3,004.25 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 6.89 |
| Free cash flow (t + 1) | 746.87 |
| Terminal Value | 15,273.48 |
| Present Value of Terminal Value | 10,945.93 |
Intrinsic Value
| Enterprise Value | 13,950.17 |
|---|---|
| Net Debt | 2,634 |
| Equity Value | 11,316.17 |
| Shares Outstanding | 243.28 |
| Equity Value Per Share | 46.52 |