Discounted Cash Flow (DCF) Analysis Unlevered

Sun Life Financial Inc. (SLF)

$55.11

+0.36 (+0.66%)
All numbers are in Millions, Currency in USD
Stock DCF: 97.50 | 55.11 | undervalue

Operating Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 39,67943,33735,69023,20732,65632,436.6832,218.8332,002.4431,787.5131,574.02
Revenue (%)
EBITDA 3,6073,6824,9924,8403,8044,156.974,129.054,101.324,073.784,046.41
EBITDA (%)
EBIT 3,6073,6824,9924,3123,061.023,418.983,396.023,373.213,350.553,328.05
EBIT (%)
Depreciation ---528742.98737.99733.04728.11723.22718.36
Depreciation (%)

Balance Sheet Data

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Total Cash 9,57513,52712,27811,21927,48614,418.6214,321.7814,225.5914,130.0514,035.15
Total Cash (%)
Account Receivables 1,9561,8122,2693,6752,4142,510.352,493.492,476.752,460.112,443.59
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 1,9032,4381,8662,6392,4932,248.232,233.132,218.132,203.242,188.44
Accounts Payable (%)
Capital Expenditure -114-158-81-67.98-95.67-95.02-94.38-93.75-93.12-92.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 55.11
Beta 0.974
Diluted Shares Outstanding 589
Cost of Debt
Tax Rate 21.48
After-tax Cost of Debt 3.36%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.882
Total Debt 13,277
Total Equity 32,459.79
Total Capital 45,736.79
Debt Weighting 29.03
Equity Weighting 70.97
Wacc

Build Up Free Cash

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 39,67943,33735,69023,20732,65632,436.6832,218.8332,002.4431,787.5131,574.02
EBITDA 3,6073,6824,9924,8403,8044,156.974,129.054,101.324,073.784,046.41
EBIT 3,6073,6824,9924,3123,061.023,418.983,396.023,373.213,350.553,328.05
Tax Rate 8.97%15.39%14.26%26.82%21.48%17.38%17.38%17.38%17.38%17.38%
EBIAT 3,283.453,115.194,279.983,155.682,403.642,824.632,805.662,786.812,768.102,749.51
Depreciation ---528742.98737.99733.04728.11723.22718.36
Accounts Receivable -144-457-1,4061,261-96.3516.8616.7516.6316.52
Inventories ----------
Accounts Payable -535-572773-146-244.77-15.10-15-14.90-14.80
Capital Expenditure -114-158-81-67.98-172-95.02-94.38-93.75-93.12-92.50
UFCF 3,169.453,636.193,169.982,982.704,165.963,126.483,446.073,422.923,399.943,377.10
WACC
PV UFCF 2,914.312,994.242,772.312,566.822,376.57
SUM PV UFCF 13,624.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.28
Free cash flow (t + 1) 3,444.64
Terminal Value 65,239.45
Present Value of Terminal Value 45,910.97

Intrinsic Value

Enterprise Value 59,535.22
Net Debt 2,107
Equity Value 57,428.22
Shares Outstanding 589
Equity Value Per Share 97.50