Discounted Cash Flow (DCF) Analysis Unlevered

Sun Life Financial Inc. (SLF.TO)

$57.99

+1.83 (+3.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 167.91 | 57.99 | 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 29,33426,99739,67943,33735,75538,502.0841,460.2244,645.6448,075.7951,769.48
Revenue (%)
EBITDA 3,3014,0423,9404,0375,8624,763.875,129.895,524.025,948.436,405.45
EBITDA (%)
EBIT 3,0923,8163,5623,6315,554.594,432.844,773.425,140.175,535.095,960.35
EBIT (%)
Depreciation 209226378406307.41331.03356.47383.85413.34445.10
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 8,8909,5069,57513,52712,27811,951.1512,869.3713,858.1314,922.8616,069.39
Total Cash (%)
Account Receivables 2,1012,0181,9561,8122,2692,317.362,495.402,687.132,893.583,115.90
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1,9722,0451,9032,4381,8662,305.352,482.472,673.202,878.593,099.75
Accounts Payable (%)
Capital Expenditure -182-85-114-158-81-139.66-150.39-161.95-174.39-187.79
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 57.99
Beta 0.955
Diluted Shares Outstanding 585
Cost of Debt
Tax Rate 14.26
After-tax Cost of Debt 2.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.143
Total Debt 10,207
Total Equity 33,924.15
Total Capital 44,131.15
Debt Weighting 23.13
Equity Weighting 76.87
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 29,33426,99739,67943,33735,75538,502.0841,460.2244,645.6448,075.7951,769.48
EBITDA 3,3014,0423,9404,0375,8624,763.875,129.895,524.025,948.436,405.45
EBIT 3,0923,8163,5623,6315,554.594,432.844,773.425,140.175,535.095,960.35
Tax Rate 10.83%17.00%8.97%15.39%14.26%13.29%13.29%13.29%13.29%13.29%
EBIAT 2,757.193,167.143,242.493,072.044,762.323,843.644,138.944,456.944,799.375,168.11
Depreciation 209226378406307.41331.03356.47383.85413.34445.10
Accounts Receivable -8362144-457-48.36-178.04-191.72-206.45-222.32
Inventories ----------
Accounts Payable -73-142535-572439.35177.12190.73205.38221.16
Capital Expenditure -182-85-114-158-81-139.66-150.39-161.95-174.39-187.79
UFCF 2,784.193,464.143,426.493,999.043,959.734,4264,344.094,677.855,037.255,424.27
WACC
PV UFCF 4,140.703,802.113,830.323,858.743,887.37
SUM PV UFCF 19,519.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.89
Free cash flow (t + 1) 5,532.76
Terminal Value 113,144.29
Present Value of Terminal Value 81,086.26

Intrinsic Value

Enterprise Value 100,605.50
Net Debt 2,381
Equity Value 98,224.50
Shares Outstanding 585
Equity Value Per Share 167.91