Discounted Cash Flow (DCF) Analysis Unlevered

Primerica, Inc. (PRI)

$130.84

-0.30 (-0.23%)
All numbers are in Millions, Currency in USD
Stock DCF: -21.80 | 130.84 | overvalue

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 1,715.971,937.332,100.832,275.012,709.733,039.913,410.313,825.854,292.034,815
Revenue (%)
EBITDA 448.42494.80572.55610.74571.62771.33865.31970.751,089.031,221.73
EBITDA (%)
EBIT 434.87482.38554.25593.04541.79745.91836.80938.761,053.141,181.47
EBIT (%)
Depreciation 13.5512.4218.3017.7029.8425.4228.5131.9935.8940.26
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 2,248.912,339.942,613.873,012.183,095.073,787.024,248.464,766.135,346.875,998.38
Total Cash (%)
Account Receivables 4,434.704,406.834,397.944,537.396,060.956,799.477,627.978,557.429,600.1310,769.88
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ---519.71619.02694.45779.06873.99980.481,099.95
Accounts Payable (%)
Capital Expenditure -6.75-13.52-25.44-27.62-24.69-26.92-30.20-33.88-38-42.63
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 130.84
Beta 1.268
Diluted Shares Outstanding 39.65
Cost of Debt
Tax Rate 27.23
After-tax Cost of Debt 148.54%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.813
Total Debt 15
Total Equity 5,188.07
Total Capital 5,203.07
Debt Weighting 0.29
Equity Weighting 99.71
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 1,715.971,937.332,100.832,275.012,709.733,039.913,410.313,825.854,292.034,815
EBITDA 448.42494.80572.55610.74571.62771.33865.31970.751,089.031,221.73
EBIT 434.87482.38554.25593.04541.79745.91836.80938.761,053.141,181.47
Tax Rate 7.71%22.11%23.21%23.79%27.23%20.81%20.81%20.81%20.81%20.81%
EBIAT 401.34375.73425.63451.94394.26590.69662.66743.40833.99935.61
Depreciation 13.5512.4218.3017.7029.8425.4228.5131.9935.8940.26
Accounts Receivable -27.878.88-139.44-1,523.57-738.51-828.50-929.45-1,042.70-1,169.76
Inventories ----------
Accounts Payable ----99.3175.4384.6294.93106.49119.47
Capital Expenditure -6.75-13.52-25.44-27.62-24.69-26.92-30.20-33.88-38-42.63
UFCF 408.14402.50427.37302.57-1,024.85-73.90-82.91-93.01-104.34-117.05
WACC
PV UFCF -67.05-68.26-69.48-70.72-71.99
SUM PV UFCF -347.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.21
Free cash flow (t + 1) -119.40
Terminal Value -1,454.27
Present Value of Terminal Value -894.42

Intrinsic Value

Enterprise Value -1,241.92
Net Debt -377.50
Equity Value -864.42
Shares Outstanding 39.65
Equity Value Per Share -21.80