Discounted Cash Flow (DCF) Analysis Unlevered
Reinsurance Group of America, Incor... (RZA)
$25.39
+0.04 (+0.16%)
All numbers are in Millions, Currency in USD
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 | 12,515.77 | 12,875.66 | 14,300 | 14.60 | 16.66 | 13.67 | 11.21 | 9.20 | 7.55 | 6.19 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 1,447.12 | 1,095.68 | 1,409 | -45.62 | 0.76 | -7.60 | -6.23 | -5.11 | -4.20 | -3.44 |
| EBITDA (%) | ||||||||||
| EBIT | 1,288.84 | 993.18 | 1,305 | 0.38 | 0.82 | 0.95 | 0.78 | 0.64 | 0.52 | 0.43 |
| EBIT (%) | ||||||||||
| Depreciation | 158.28 | 102.50 | 104 | -46 | -0.05 | -8.55 | -7.01 | -5.75 | -4.72 | -3.87 |
| 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 | 52,994.68 | 56,094.92 | 68,004 | 3,408 | 3,035 | 1,172.67 | 962.08 | 789.31 | 647.56 | 531.27 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 392.72 | 427.89 | 493 | 0.48 | 0.55 | 0.45 | 0.37 | 0.30 | 0.25 | 0.20 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 488.74 | 487.18 | 557 | 0.56 | 0.64 | 0.53 | 0.43 | 0.36 | 0.29 | 0.24 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -44.21 | -28.89 | -34 | -28 | -0.02 | -5.27 | -4.32 | -3.55 | -2.91 | -2.39 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 25.39 |
|---|---|
| Beta | 0.255 |
| Diluted Shares Outstanding | 62.41 |
| Cost of Debt | |
| Tax Rate | 10.71 |
| After-tax Cost of Debt | 0.00% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 3.995 |
| Total Debt | 3,667 |
| Total Equity | 1,584.62 |
| Total Capital | 5,251.62 |
| Debt Weighting | 69.83 |
| Equity Weighting | 30.17 |
| 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 | 12,515.77 | 12,875.66 | 14,300 | 14.60 | 16.66 | 13.67 | 11.21 | 9.20 | 7.55 | 6.19 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 1,447.12 | 1,095.68 | 1,409 | -45.62 | 0.76 | -7.60 | -6.23 | -5.11 | -4.20 | -3.44 |
| EBIT | 1,288.84 | 993.18 | 1,305 | 0.38 | 0.82 | 0.95 | 0.78 | 0.64 | 0.52 | 0.43 |
| Tax Rate | -59.45% | 15.37% | 23.14% | 24.95% | 10.71% | 2.95% | 2.95% | 2.95% | 2.95% | 2.95% |
| EBIAT | 2,055.01 | 840.55 | 1,002.96 | 0.29 | 0.73 | 0.92 | 0.75 | 0.62 | 0.51 | 0.42 |
| Depreciation | 158.28 | 102.50 | 104 | -46 | -0.05 | -8.55 | -7.01 | -5.75 | -4.72 | -3.87 |
| Accounts Receivable | - | -35.17 | -65.11 | 492.52 | -0.07 | 0.10 | 0.08 | 0.07 | 0.05 | 0.04 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -1.56 | 69.82 | -556.44 | 0.08 | -0.12 | -0.09 | -0.08 | -0.06 | -0.05 |
| Capital Expenditure | -44.21 | -28.89 | -34 | -28 | -0.02 | -5.27 | -4.32 | -3.55 | -2.91 | -2.39 |
| UFCF | 2,169.09 | 877.43 | 1,077.68 | -137.63 | 0.67 | -12.91 | -10.59 | -8.69 | -7.13 | -5.85 |
| WACC | ||||||||||
| PV UFCF | -12.76 | -10.34 | -8.38 | -6.80 | -5.51 | |||||
| SUM PV UFCF | -43.79 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 1.21 |
| Free cash flow (t + 1) | -5.97 |
| Terminal Value | 755.31 |
| Present Value of Terminal Value | 711.22 |
Intrinsic Value
| Enterprise Value | 667.44 |
|---|---|
| Net Debt | 719 |
| Equity Value | -51.56 |
| Shares Outstanding | 62.41 |
| Equity Value Per Share | -0.83 |