Discounted Cash Flow (DCF) Analysis Levered
Arthur J. Gallagher & Co. (AJG)
$253.69
+0.52 (+0.21%)
All numbers are in Millions, Currency in USD
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 | 7,195 | 7,003.60 | 8,209.40 | 8,550.60 | 10,071.90 | 10,991.08 | 11,994.14 | 13,088.74 | 14,283.24 | 15,586.75 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,119.20 | 1,752.50 | 1,704.10 | 2,125.40 | 2,031.70 | 2,338.13 | 2,551.51 | 2,784.36 | 3,038.47 | 3,315.76 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -138.80 | -99.30 | -128.60 | -182.70 | -193.60 | -197.23 | -215.23 | -234.87 | -256.31 | -279.70 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 980.40 | 1,653.20 | 1,575.50 | 1,942.70 | 1,838.10 | 2,140.89 | 2,336.28 | 2,549.49 | 2,782.16 | 3,036.06 |
Weighted Average Cost Of Capital
Share price | $ 253.69 |
---|---|
Beta | 0.684 |
Diluted Shares Outstanding | 219.30 |
Cost of Debt | |
Tax Rate | 18.19 |
After-tax Cost of Debt | 3.56% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.584 |
Total Debt | 8,317.20 |
Total Equity | 55,634.22 |
Total Capital | 63,951.42 |
Debt Weighting | 13.01 |
Equity Weighting | 86.99 |
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 | 7,195 | 7,003.60 | 8,209.40 | 8,550.60 | 10,071.90 | 10,991.08 | 11,994.14 | 13,088.74 | 14,283.24 | 15,586.75 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,119.20 | 1,752.50 | 1,704.10 | 2,125.40 | 2,031.70 | 2,338.13 | 2,551.51 | 2,784.36 | 3,038.47 | 3,315.76 |
Capital Expenditure | -138.80 | -99.30 | -128.60 | -182.70 | -193.60 | -197.23 | -215.23 | -234.87 | -256.31 | -279.70 |
Free Cash Flow | 980.40 | 1,653.20 | 1,575.50 | 1,942.70 | 1,838.10 | 2,140.89 | 2,336.28 | 2,549.49 | 2,782.16 | 3,036.06 |
WACC | ||||||||||
PV LFCF | 1,999.71 | 2,038.31 | 2,077.64 | 2,117.74 | 2,158.61 | |||||
SUM PV LFCF | 10,392.02 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.06 |
Free cash flow (t + 1) | 3,096.78 |
Terminal Value | 61,201.25 |
Present Value of Terminal Value | 43,513.51 |
Intrinsic Value
Enterprise Value | 53,905.53 |
---|---|
Net Debt | 7,345.70 |
Equity Value | 46,559.83 |
Shares Outstanding | 219.30 |
Equity Value Per Share | 212.31 |