DCF Tool

ANTM

Anthem is a leading health benefits company dedicated to improving lives and communities, and making healthcare simpler. Through its affiliated companies, Anthem serves more than 110 million people, including approximately 43 million within its family of health plans. We aim to be the most innovative, valuable and inclusive partner.
Analysis Results
Intrinsic Value $936.65
Latest Price $482.58
Relative Value 48% undervalued
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Cash Flow (Billions)
Analysis Parameters
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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 10.6%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 6.5%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 10.6%, 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 8.07 7.58
2023 8.93 7.86
2024 9.87 8.16
2025 10.9 8.47
2026 12.1 8.79
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 271 billion. This corresponds to a present value of 185 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 40.9 billion. Adding in the terminal value gives a total present value of 226 billion.

There are presently 241.0 million outstanding shares, so the intrinsic value per share is 936.65.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 51,122,000,000
Current Cash 0
Current Liabilities 34,885,000,000
Current Debt 1,874,000,000
Non-Cash Working Capital (NCWC) 18,111,000,000
Change in NCWC 1,113,000,000
EBIT 8,744,000,000
Tax Provision 1,830,000,000
Depreciation and Amortization 1,302,000,000
Capital Expenditure -1,087,000,000
Unlevered Free Cash Flow 8,052,880,757
Current Assets 45,751,000,000
Current Cash 0
Current Liabilities 29,453,000,000
Current Debt 700,000,000
Non-Cash Working Capital (NCWC) 16,998,000,000
Change in NCWC -716,000,000
EBIT 7,058,000,000
Tax Provision 1,666,000,000
Depreciation and Amortization 1,154,000,000
Capital Expenditure -1,021,000,000
Unlevered Free Cash Flow 4,590,000,320
Current Assets 39,033,000,000
Current Cash 0
Current Liabilities 23,617,000,000
Current Debt 2,298,000,000
Non-Cash Working Capital (NCWC) 17,714,000,000
Change in NCWC 3,364,000,000
EBIT 6,733,000,000
Tax Provision 1,178,000,000
Depreciation and Amortization 1,133,000,000
Capital Expenditure -1,077,000,000
Unlevered Free Cash Flow 8,827,774,603
Current Assets 34,321,000,000
Current Cash 0
Current Liabilities 21,965,000,000
Current Debt 1,994,000,000
Non-Cash Working Capital (NCWC) 14,350,000,000
Change in NCWC -1,106,400,000
EBIT 5,832,000,000
Tax Provision 1,318,000,000
Depreciation and Amortization 1,132,000,000
Capital Expenditure -1,208,000,000
Unlevered Free Cash Flow 3,132,911,760
Current Assets 36,262,800,000
Current Cash 0
Current Liabilities 23,356,000,000
Current Debt 2,549,600,000
Non-Cash Working Capital (NCWC) 15,456,400,000
Change in NCWC 1,067,500,000
EBIT 4,985,200,000
Tax Provision 1,229,300,000
Depreciation and Amortization 890,400,000
Capital Expenditure -799,500,000
Unlevered Free Cash Flow 4,597,531,489
Current Assets 34,314,900,000
Current Cash 0
Current Liabilities 21,294,400,000
Current Debt 1,368,400,000
Non-Cash Working Capital (NCWC) 14,388,900,000
Change in NCWC 2,079,400,000
EBIT 5,278,400,000
Tax Provision 2,085,600,000
Depreciation and Amortization 911,800,000
Capital Expenditure -583,600,000
Unlevered Free Cash Flow 5,269,388,716
Current Assets 30,862,100,000
Current Cash 0
Current Liabilities 19,092,600,000
Current Debt 540,000,000
Non-Cash Working Capital (NCWC) 12,309,500,000
Change in NCWC -2,191,000,000
EBIT 5,274,700,000
Tax Provision 2,071,000,000
Depreciation and Amortization 907,900,000
Capital Expenditure -638,200,000
Unlevered Free Cash Flow 994,535,024
Current Assets 32,228,900,000
Current Cash 0
Current Liabilities 18,753,400,000
Current Debt 1,025,000,000
Non-Cash Working Capital (NCWC) 14,500,500,000
Change in NCWC 188,200,000
EBIT 5,049,900,000
Tax Provision 1,808,000,000
Depreciation and Amortization 851,000,000
Capital Expenditure -714,600,000
Unlevered Free Cash Flow 3,284,296,204
Current Assets 29,745,800,000
Current Cash 0
Current Liabilities 16,351,500,000
Current Debt 918,000,000
Non-Cash Working Capital (NCWC) 14,312,300,000
Change in NCWC 1,073,700,000
EBIT 4,588,200,000
Tax Provision 1,205,900,000
Depreciation and Amortization 908,800,000
Capital Expenditure -646,500,000
Unlevered Free Cash Flow 4,483,412,962
Current Assets 28,268,400,000
Current Cash 0
Current Liabilities 15,836,900,000
Current Debt 807,100,000
Non-Cash Working Capital (NCWC) 13,238,600,000
Change in NCWC 592,400,000
EBIT 4,377,300,000
Tax Provision 1,210,000,000
Depreciation and Amortization 740,700,000
Capital Expenditure -544,900,000
Unlevered Free Cash Flow 3,795,293,558

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