DCF Tool

AMP

Ameriprise Financial Inc – Securities and Commodity Exchanges
At Ameriprise Financial has been helping people feel confident about their financial future for more than 125 years. With extensive advisory, asset management and insurance capabilities and a nationwide network of approximately 10,000 financial advisors, we have the strength and expertise to serve the full range of individual and institutional investors' financial needs.
Analysis Results
Intrinsic Value $263.27
Latest Price $251.95
Relative Value 4% undervalued
Thoughts on this result? Let us know.
Ad
Cash Flow (Billions)
Analysis Parameters
%
%
%
New Ticker
Ad
Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 5.4%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 8.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 5.4%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (billion) Present value (billion)
2022 1.83 1.68
2023 1.92 1.63
2024 2.03 1.58
2025 2.14 1.53
2026 2.26 1.48
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 34.1 billion. This corresponds to a present value of 20.6 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 7.89 billion. Adding in the terminal value gives a total present value of 28.5 billion.

There are presently 108.0 million outstanding shares, so the intrinsic value per share is 263.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 158,955,000,000
Current Cash 0
Current Liabilities 161,151,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -2,196,000,000
Change in NCWC -1,294,000,000
EBIT 3,350,000,000
Tax Provision 590,000,000
Depreciation and Amortization 98,000,000
Capital Expenditure -120,000,000
Unlevered Free Cash Flow 1,444,000,000
Current Assets 150,240,000,000
Current Cash 0
Current Liabilities 151,142,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -902,000,000
Change in NCWC -2,151,000,000
EBIT 1,831,000,000
Tax Provision 297,000,000
Depreciation and Amortization 207,000,000
Capital Expenditure -147,000,000
Unlevered Free Cash Flow -557,000,000
Current Assets 140,432,000,000
Current Cash 0
Current Liabilities 139,183,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,249,000,000
Change in NCWC -132,000,000
EBIT 2,019,000,000
Tax Provision 339,000,000
Depreciation and Amortization 183,000,000
Capital Expenditure -143,000,000
Unlevered Free Cash Flow 1,620,350,806
Current Assets 127,648,000,000
Current Cash 0
Current Liabilities 126,267,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,381,000,000
Change in NCWC 2,386,000,000
EBIT 2,484,000,000
Tax Provision 386,000,000
Depreciation and Amortization 198,000,000
Capital Expenditure -162,000,000
Unlevered Free Cash Flow 4,520,000,000
Current Assets 133,829,000,000
Current Cash 0
Current Liabilities 134,834,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,005,000,000
Change in NCWC 512,000,000
EBIT 2,214,000,000
Tax Provision 734,000,000
Depreciation and Amortization 234,000,000
Capital Expenditure -162,000,000
Unlevered Free Cash Flow 2,064,000,000
Current Assets 126,094,000,000
Current Cash 0
Current Liabilities 127,611,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,517,000,000
Change in NCWC 21,000,000
EBIT 1,592,000,000
Tax Provision 278,000,000
Depreciation and Amortization 248,000,000
Capital Expenditure -92,000,000
Unlevered Free Cash Flow 1,491,000,000
Current Assets 129,196,000,000
Current Cash 0
Current Liabilities 130,734,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) -1,538,000,000
Change in NCWC -1,657,000,000
EBIT 2,142,000,000
Tax Provision 455,000,000
Depreciation and Amortization 248,000,000
Capital Expenditure -133,000,000
Unlevered Free Cash Flow 145,000,000
Current Assets 133,041,000,000
Current Cash 0
Current Liabilities 132,922,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 119,000,000
Change in NCWC -1,212,000,000
EBIT 2,547,000,000
Tax Provision 545,000,000
Depreciation and Amortization 254,000,000
Capital Expenditure -113,000,000
Unlevered Free Cash Flow 931,000,000
Current Assets 129,621,000,000
Current Cash 0
Current Liabilities 128,290,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,331,000,000
Change in NCWC -229,000,000
EBIT 1,970,000,000
Tax Provision 492,000,000
Depreciation and Amortization 239,000,000
Capital Expenditure -105,000,000
Unlevered Free Cash Flow 1,383,000,000
Current Assets 120,909,000,000
Current Cash 0
Current Liabilities 119,349,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,560,000,000
Change in NCWC -160,000,000
EBIT 1,238,000,000
Tax Provision 335,000,000
Depreciation and Amortization 225,000,000
Capital Expenditure -137,000,000
Unlevered Free Cash Flow 831,000,000

This analysis is provided for informational purposes only and does not constitute financial or investing advice. For more information on the advantages and limitations of DCF analysis see background. This information is provided on an "as is" basis. No warranty, expressed or implied, is made regarding accuracy, adequacy, completeness, legality, reliability or usefulness of any information. By using this site you agree that under no circumstances shall Valuation Tools LLC be held liable for any loss or damage caused by information obtained from this website including any articles, data, videos, its social media accounts, or any other materials.