Discounted Cash Flow (DCF) Analysis Unlevered

OneMain Holdings, Inc. (OMF)

$29.07

-0.14 (-0.48%)
All numbers are in Millions, Currency in USD
Stock DCF: 437.59 | 29.07 | 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 2,9693,3663,8143,9063,9264,216.584,528.664,863.845,223.835,610.46
Revenue (%)
EBITDA 1,5751,7882,3392,2682,9422,534.122,721.682,923.123,139.473,371.83
EBITDA (%)
EBIT 1,2471,4992,0682,0042,6782,194.922,357.382,531.852,719.242,920.50
EBIT (%)
Depreciation 328289271264264339.20364.30391.27420.23451.33
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 9876791,8122,4241,0161,592.701,710.581,837.191,973.172,119.21
Total Cash (%)
Account Receivables 151328929938,4248,389.559,010.499,677.3810,393.6411,162.90
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 58123106.94109.52110.08118.23126.98136.37146.47157.31
Accounts Payable (%)
Capital Expenditure 44.535.145.265.295.686.106.557.047.56
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 29.07
Beta 1.615
Diluted Shares Outstanding 132.90
Cost of Debt
Tax Rate 24.53
After-tax Cost of Debt 3.99%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.586
Total Debt 17,750
Total Equity 3,863.40
Total Capital 21,613.40
Debt Weighting 82.12
Equity Weighting 17.88
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 2,9693,3663,8143,9063,9264,216.584,528.664,863.845,223.835,610.46
EBITDA 1,5751,7882,3392,2682,9422,534.122,721.682,923.123,139.473,371.83
EBIT 1,2471,4992,0682,0042,6782,194.922,357.382,531.852,719.242,920.50
Tax Rate 57.54%28.37%22.13%25.28%24.53%31.57%31.57%31.57%31.57%31.57%
EBIAT 529.471,073.801,610.331,497.362,021.191,502.011,613.181,732.571,860.811,998.53
Depreciation 328289271264264339.20364.30391.27420.23451.33
Accounts Receivable -2-276-10-38,12530,034.45-620.94-666.89-716.25-769.27
Inventories ----------
Accounts Payable -65-16.062.580.568.158.759.4010.0910.84
Capital Expenditure 44.535.145.265.295.686.106.557.047.56
UFCF 861.471,434.341,594.411,759.20-35,833.9631,889.491,371.391,472.901,581.911,698.99
WACC
PV UFCF 30,272.911,235.881,260.061,284.721,309.86
SUM PV UFCF 35,363.43

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 5.34
Free cash flow (t + 1) 1,732.97
Terminal Value 51,885.38
Present Value of Terminal Value 40,001.70

Intrinsic Value

Enterprise Value 75,365.13
Net Debt 17,209
Equity Value 58,156.13
Shares Outstanding 132.90
Equity Value Per Share 437.59