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Reinsurance Group of America Inc

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Reinsurance Group of America Inc Logo
Reinsurance Group of America Inc
Price: 144.58 USD -0.89% Market Closed
Updated: Sep 27, 2023

DCF Value

This DCF valuation model was created by Alpha Spread and was last updated on Sep 27, 2023.

Estimated DCF Value of one RGA stock is 275 USD. Compared to the current market price of 144.58 USD, the stock is Undervalued by 47%.

Base Case
275 USD
Undervaluation 47%
DCF Value
Worst Case
Base Case
Best Case
DCF Value
Worst Case
Base Case
Best Case
DCF Value: 275 USD
Reinsurance Group of America Inc Competitors:
DCF Valuation
Greenlight Capital Re Ltd
Vietnam National Reinsurance Corp
Thaire Life Assurance PCL
MNRB Holdings Bhd
Thai Reinsurance PCL
Saudi Reinsurance Company SJSC
Siriuspoint Ltd
Alleghany Corp

Present Value Calculation

The first step in the DCF calculation process is to estimate the company's future free cash flow. Once free cash flow is forecasted, it is discounted at a risk-appropriate discount rate. The resulting value is the present value of the company's free cash flow. You can change any model inputs below.

Available Valuation Models
1 valuation model available
Alpha Spread
Updated on Sep 27, 2023
Default Valuation
Create My Valuation Model
Other investors haven't shared any valuation models for Reinsurance Group of America Inc.
Model Settings
Operating Model
Equity Model: Insurance
Discount Rate
Forecast Period
5 Years
Terminal Growth
Discount Rate
Terminal Growth
Growth Period
5 Years
Copy as My Model

DCF Model
Base Case Scenario

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DCF Model

To view the process of deriving the DCF Value of one share from the estimated Present Value, see the DCF Value Calculation block.

DCF Value Calculation

Depending on which type of operating model is chosen (equity or whole firm valuation model), the resulting value is either the value of equity or the value of the entire firm. In the case of the latter, to move from the value of the firm to the value of equity, liabilities are subtracted and assets are added.

Capital Structure
From Present Value to DCF Value

Present Value 18.3B USD
Equity Value 18.3B USD
/ Shares Outstanding 66.5m
RGA DCF Value 275 USD
Undervalued by 47%

To view the process of calculating the Present Value of Reinsurance Group of America Inc' future free cash flow, see the Present Value Calculation block.

Valuation Analysis

After the valuation process, in order to gain a deeper understanding of the relationship between risk and opportunity, it is useful to study the dynamic of company's valuation under various inputs to the DCF model in use.

DCF Financials
Financials used in DCF Calculation

18.2B 22.6B
Net Income
1.3B 1.6B
1.3B 1.6B

Sensitivity Analysis
DCF Value Sensitivity Analysis

See Also

Other Stocks
What is the DCF value of one RGA stock?

Estimated DCF Value of one RGA stock is 275 USD. Compared to the current market price of 144.58 USD, the stock is Undervalued by 47%.

The true DCF Value lies somewhere between the worst-case and best-case scenario values. This is because the future is not predetermined, and the stock's DCF Value is based almost entirely on the future of the company. Knowing the full range of possible stock DCF values gives a complete picture of the investment risks and opportunities.

How was the DCF Value calculated?

1. Present Value Calculation. Using the DCF Operating Model we project Reinsurance Group of America Inc's future free cash flow and discount it at a selected discount rate to calculate its Present Value (18.3B USD).

2. DCF Value Calculation. We use the company's capital structure to calculate the total Equity Value based on the previously computed Present Value of the free cash flow. Dividing the Equity Value by the number of shares outstanding gives us the DCF Value of 275 USD per one RGA share.