DCF Tool

OMF

OneMain Holdings Inc – Credit Card Issuing
OneMain Financial has been offering responsible and transparent loans for over 100 years. With almost 1,500 locations throughout 44 states, the company is committed to helping people with their personal loan needs. OneMain and its team members are dedicated to the communities where they live and work.
Analysis Results
Intrinsic Value $1,719.27
Latest Price $29.07
Relative Value 98% 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 38.5%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 0.9%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 38.5%, 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 5.34 4.9
2023 7.4 6.23
2024 10.2 7.91
2025 14.2 10.1
2026 19.7 12.8
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 286 billion. This corresponds to a present value of 171 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 41.9 billion. Adding in the terminal value gives a total present value of 213 billion.

There are presently 124.0 million outstanding shares, so the intrinsic value per share is 1719.27.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 38,730,000,000
Current Cash 0
Current Liabilities 36,744,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,986,000,000
Change in NCWC 763,000,000
EBIT 3,482,000,000
Tax Provision 854,000,000
Depreciation and Amortization 528,000,000
Capital Expenditure 0
Unlevered Free Cash Flow 3,919,000,000
Current Assets 19,689,000,000
Current Cash 0
Current Liabilities 18,466,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,223,000,000
Change in NCWC -1,229,000,000
EBIT 977,000,000
Tax Provision 247,000,000
Depreciation and Amortization 264,000,000
Capital Expenditure 0
Unlevered Free Cash Flow -235,000,000
Current Assets 20,347,000,000
Current Cash 0
Current Liabilities 17,895,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 2,452,000,000
Change in NCWC 733,000,000
EBIT 1,098,000,000
Tax Provision 243,000,000
Depreciation and Amortization 271,000,000
Capital Expenditure 0
Unlevered Free Cash Flow 1,859,000,000
Current Assets 17,983,000,000
Current Cash 0
Current Liabilities 16,264,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,719,000,000
Change in NCWC 597,000,000
EBIT 678,000,000
Tax Provision 177,000,000
Depreciation and Amortization 289,000,000
Capital Expenditure 0
Unlevered Free Cash Flow 1,371,682,692
Current Assets 17,243,000,000
Current Cash 0
Current Liabilities 16,121,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,122,000,000
Change in NCWC 294,000,000
EBIT 500,000,000
Tax Provision 248,000,000
Depreciation and Amortization 328,000,000
Capital Expenditure 0
Unlevered Free Cash Flow 834,296,983
Current Assets 15,839,000,000
Current Cash 0
Current Liabilities 15,011,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 828,000,000
Change in NCWC 488,000,000
EBIT 464,000,000
Tax Provision 113,000,000
Depreciation and Amortization 521,000,000
Capital Expenditure 0
Unlevered Free Cash Flow 1,325,719,101
Current Assets 18,724,000,000
Current Cash 0
Current Liabilities 18,384,000,000
Current Debt 0
Non-Cash Working Capital (NCWC) 340,000,000
Change in NCWC -1,370,784,000
EBIT -207,000,000
Tax Provision -147,000,000
Depreciation and Amortization 191,000,000
Capital Expenditure 0
Unlevered Free Cash Flow -1,386,784,000
Current Assets 10,914,806,000
Current Cash 0
Current Liabilities 9,204,022,000
Current Debt 0
Non-Cash Working Capital (NCWC) 1,710,784,000
Change in NCWC -24,486,000
EBIT 904,496,000
Tax Provision 297,046,000
Depreciation and Amortization 34,666,000
Capital Expenditure 0
Unlevered Free Cash Flow 617,630,000

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