Primerica distributes financial products to middle income households in the United States and Canada. The company operates in three segments: Term Life Insurance; Investment and Savings Products; and Corporate and Other Distributed Products. The company was founded in 1977 and is based in Duluth, Georgia.
PRI Price Forecast Based on DCF Valuation
DCF Fair Value Target:
The table below illustrates the output of a discounted cash flow forecast using a variety of scenarios for Primerica Inc. To summarize, we found that Primerica Inc ranked in the 65th percentile in terms of potential gain offered. Specifically, our DCF analysis implies the stock is trading below its fair value by an estimated 130.67%. The most interesting components of our discounted cash flow analysis for Primerica Inc ended up being:
The stock's equity weight, or the proportion of capital from equity relative to debt, is 92. Its equity weight surpasses that of 83.8% of free cash flow generating stocks in the Financial Services sector.
The business' balance sheet reveals debt to be 8% of the company's capital (with equity being the remaining amount). Approximately just 19.22% of US stocks with free cash flow have a lower reliance on debt in their capital structure.
PRI's estimated cost of debt, based largely on its market capitalization and its interest coverage ratio, is 2%; for context, that number is higher than 41.07% of tickers in our DCF set.
Terminal Growth Rate in Free Cash Flow
Return Relative to Current Share Price
APO, CACC, FFG, AMG, and SAMG can be thought of as valuation peers to PRI, in the sense that they are in the Financial Services sector and have a similar price forecast based on DCF valuation.
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DULUTH, Ga.--(BUSINESS WIRE)--Primerica, Inc. (NYSE:PRI) announced today that it will hold a webcast on Thursday, August 6, 2020 at 10:00 a.m. Eastern Time to discuss the Company’s results for the second quarter ended June 30, 2020, as well as other business-related matters, including future expectations. A news release announcing the quarter’s results will be distributed on Wednesday, August 5, 2020, after the close of the market. The earnings news release, financial supplement and live webcas