Fidelity National Financial, Inc. (FNF) Two-Stage Excess Return Model - Discounting Cash Flows
Fidelity National Financial, Inc.
FNF (NYSE)

Estimated Value

USD

Market Price USD

* Values are not guaranteed, please do your own
research before making investment decisions.

Two-Stage Excess Return Model

Used to estimate the value of companies based on two stages of growth. An initial period of high growth, represented by [Sum of discounted excess returns in Growth Stage], followed by a period of stable growth, represented by [Discounted excess return in terminal stage]. Excess Return models are better suited to calculate the intrinsic value of a financial company than an enterprise valuation model (such as the Discounted Free Cash Flow Model).

Read more: GitHub Documentation

Interactive Assumptions

Results

Estimated Value 56.7 USD
Book value of equity invested 28.91 USD
Sum of discounted excess returns in Growth Stage 5.36 USD
Terminal stage EPS 4.9 USD
Terminal stage Book Value 36.68 USD
Terminal stage Equity Cost 3.3 USD
Discounted excess return in terminal stage 22.43 USD
Excess Returns in the Terminal Stage 34.49 USD
Terminal Cost of Equity (the discount rate) 8.99%
Terminal year's excess return 1.6 USD
Average historical Return on Equity 13.35%
Average historical Payout Ratio 53.6%
Payout Ratio in stable stage 67.34%
Yield of the U.S. 10 Year Treasury Bond 4.36%

Historical and Forecasted Data

In USD

Edit Chart Values 2025 2026 2027 2028 2029

amounts of USD except for #

2024 LTM 2025 2026 2027 2028 2029
Beginning Book Value 25.59 28.61 28.61 30.28 31.93 33.56 35.15
Ending Book Value 28.61 28.91 30.28 31.93 33.56 35.15 36.68
EPS 4.65 1.04 3.82 4.04 4.26 4.48 4.69
Return on Equity 18.38% 3.68% 13.35% 13.35% 13.35% 13.35% 13.35%
Dividend per Share 1.94 1.98 2.15 2.39 2.64 2.89 3.16
Payout Ratio 41.72% 190.4% 56.35% 59.1% 61.85% 64.59% 67.34%
Retained Earnings 2.71 -0.94 1.67 1.65 1.63 1.59 1.53
Equity Cost 2.3 2.57 2.57 2.72 2.87 3.02 3.16
Cost of Equity 8.99% 8.99% 8.99% 8.99% 8.99% 8.99% 8.99%
Excess Return 2.35 -1.53 1.25 1.32 1.39 1.46 1.53
Discounted Excess Return
1.14 1.11 1.07 1.04 0.996

amounts of USD except for #

Average LTM 2024 2023 2022 2021 2020 2019 2018 2017 2016 2015
Net Income 1,021 285 1,270 517 1,294 2,797 1,427 1,062 628 771 650 527
Total Stockholders Equity 5,788 7,893 7,754 6,908 -2,862 9,414 8,351 5,382 4,630 4,447 5,996 5,754
Return on Equity 13.35% 3.68% 18.38% -18.06% 13.75% 33.49% 26.51% 22.94% 14.12% 12.86% 11.3% 7.85%
Dividends Paid to Common Shareholders 371.4 540.5 525.7 494.1 473 427.5 369.2 330.3 313.9 211.4 207 193.1
Payout Ratio 53.6% 190.4% 41.72% 95.81% 36.52% 17.65% 25.9% 31.11% 50% 31.97% 31.82% 36.75%
Shares Outstanding 287.4 273 271 270 275 285 284 273 273 271 338.8 348
Earnings per Share 3.44 1.04 4.65 1.91 4.71 8.5 5.02 3.89 2.3 2.44 1.92 1.51
Dividend per Share 1.33 1.98 1.94 1.83 1.72 1.5 1.3 1.21 1.15 0.78 0.611 0.555
Dividend Growth Rate 14.77% 2.06% 6.01% 6.4% 14.67% 15.38% 7.44% 5.22% 47.44% 27.66% 10.09% 20.13%
Book Value 20.22 28.91 28.61 25.59 -10.41 33.03 29.4 19.71 16.96 16.41 17.7 16.53
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Discounting Cash Flows

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