Discounted Cash Flow (DCF) Analysis Levered

Arch Capital Group Ltd. (ACGLP)

$24.99

+0.01 (+0.04%)
All numbers are in Millions, Currency in USD
Stock DCF: 1,159.06 | 24.99 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 6,783.928,294.958,925.119,599.8613,35615,912.2618,957.7822,586.2026,909.0732,059.32
Revenue (%)
Operating Cash Flow 2,048.462,886.503,427.553,815.235,7495,925.247,059.298,410.4010,020.1111,937.90
Operating Cash Flow (%)
Capital Expenditure -37.84-39.87-41.39-51.67-52-77.33-92.13-109.76-130.77-155.80
Capital Expenditure (%)
Free Cash Flow 2,010.622,846.633,386.163,763.555,6975,847.916,967.168,300.649,889.3411,782.10

Weighted Average Cost Of Capital

Share price $ 24.99
Beta 0.000
Diluted Shares Outstanding 378.80
Cost of Debt
Tax Rate -43.00
After-tax Cost of Debt 4.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.262
Total Debt 2,726
Total Equity 9,466.21
Total Capital 12,192.21
Debt Weighting 22.36
Equity Weighting 77.64
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 6,783.928,294.958,925.119,599.8613,35615,912.2618,957.7822,586.2026,909.0732,059.32
Operating Cash Flow 2,048.462,886.503,427.553,815.235,7495,925.247,059.298,410.4010,020.1111,937.90
Capital Expenditure -37.84-39.87-41.39-51.67-52-77.33-92.13-109.76-130.77-155.80
Free Cash Flow 2,010.622,846.633,386.163,763.555,6975,847.916,967.168,300.649,889.3411,782.10
WACC
PV LFCF 5,601.446,392.277,294.758,324.649,499.93
SUM PV LFCF 37,113.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.40
Free cash flow (t + 1) 12,017.75
Terminal Value 500,739.42
Present Value of Terminal Value 403,746.98

Intrinsic Value

Enterprise Value 440,860.01
Net Debt 1,809
Equity Value 439,051.01
Shares Outstanding 378.80
Equity Value Per Share 1,159.06