Discounted Cash Flow (DCF) Analysis Unlevered
Prudential Financial, Inc. (PRU)
$77.58
+0.35 (+-%)
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 | 62,992 | 64,807 | 57,033 | 70,934 | 60,050 | 60,037.31 | 60,024.62 | 60,011.94 | 59,999.25 | 59,986.57 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 6,471 | 7,133 | 1,572 | 11,076 | -944 | 4,572.21 | 4,571.24 | 4,570.28 | 4,569.31 | 4,568.34 |
| EBITDA (%) | ||||||||||
| EBIT | 6,310 | 6,673 | 1,115 | 10,872 | -1,068 | 4,300.75 | 4,299.84 | 4,298.93 | 4,298.02 | 4,297.11 |
| EBIT (%) | ||||||||||
| Depreciation | 161 | 460 | 457 | 204 | 124 | 271.46 | 271.40 | 271.35 | 271.29 | 271.23 |
| 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 | 375,693 | 413,167 | 434,406 | 391,933 | 21,842 | 310,336.23 | 310,270.65 | 310,205.08 | 310,139.52 | 310,073.98 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | - | - | - | - | - | - | - | - | - | - |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 77.58 |
|---|---|
| Beta | 1.401 |
| Diluted Shares Outstanding | 390.10 |
| Cost of Debt | |
| Tax Rate | 19.03 |
| After-tax Cost of Debt | 4.05% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.994 |
| Total Debt | 20,683 |
| Total Equity | 30,263.96 |
| Total Capital | 50,946.96 |
| Debt Weighting | 40.60 |
| Equity Weighting | 59.40 |
| 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 | 62,992 | 64,807 | 57,033 | 70,934 | 60,050 | 60,037.31 | 60,024.62 | 60,011.94 | 59,999.25 | 59,986.57 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 6,471 | 7,133 | 1,572 | 11,076 | -944 | 4,572.21 | 4,571.24 | 4,570.28 | 4,569.31 | 4,568.34 |
| EBIT | 6,310 | 6,673 | 1,115 | 10,872 | -1,068 | 4,300.75 | 4,299.84 | 4,298.93 | 4,298.02 | 4,297.11 |
| Tax Rate | 15.72% | 17.68% | -15.79% | 17.66% | 19.03% | 10.86% | 10.86% | 10.86% | 10.86% | 10.86% |
| EBIAT | 5,317.94 | 5,493.25 | 1,291.05 | 8,951.64 | -864.74 | 3,833.63 | 3,832.82 | 3,832.01 | 3,831.20 | 3,830.39 |
| Depreciation | 161 | 460 | 457 | 204 | 124 | 271.46 | 271.40 | 271.35 | 271.29 | 271.23 |
| Accounts Receivable | - | - | - | - | - | - | - | - | - | - |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| UFCF | - | - | - | - | - | 4,105.09 | 4,104.22 | 4,103.35 | 4,102.49 | 4,101.62 |
| WACC | ||||||||||
| PV UFCF | 3,815.85 | 3,546.24 | 3,295.67 | 3,062.82 | 2,846.41 | |||||
| SUM PV UFCF | 16,566.98 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.58 |
| Free cash flow (t + 1) | 4,183.65 |
| Terminal Value | 74,975.82 |
| Present Value of Terminal Value | 52,031.16 |
Intrinsic Value
| Enterprise Value | 68,598.14 |
|---|---|
| Net Debt | 3,432 |
| Equity Value | 65,166.14 |
| Shares Outstanding | 390.10 |
| Equity Value Per Share | 167.05 |