Discounted Cash Flow (DCF) Analysis Levered

AssetMark Financial Holdings, Inc. (AMK)

$30.61

+0.19 (+0.62%)

All numbers are in Millions, Currency in USD

Stock DCF: 30.88 | 30.61 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	363.63	417.94	432.08	530.30	618.31	707.41	809.36	926	1,059.44	1,212.12
Revenue (%)
Operating Cash Flow	61.66	55.08	76.95	128.98	140.30	134.35	153.71	175.86	201.21	230.20
Operating Cash Flow (%)
Capital Expenditure	-17.41	-22.50	-29.06	-34.65	-39.06	-42.09	-48.16	-55.10	-63.04	-72.12
Capital Expenditure (%)
Free Cash Flow	44.25	32.59	47.88	94.32	101.24	92.26	105.55	120.77	138.17	158.08

Weighted Average Cost Of Capital

Share price	$ 30.61
Beta	1.038
Diluted Shares Outstanding	73.87
Cost of Debt
Tax Rate	24.49
After-tax Cost of Debt	3.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.306
Total Debt	140.06
Total Equity	2,261.25
Total Capital	2,401.31
Debt Weighting	5.83
Equity Weighting	94.17
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	363.63	417.94	432.08	530.30	618.31	707.41	809.36	926	1,059.44	1,212.12
Operating Cash Flow	61.66	55.08	76.95	128.98	140.30	134.35	153.71	175.86	201.21	230.20
Capital Expenditure	-17.41	-22.50	-29.06	-34.65	-39.06	-42.09	-48.16	-55.10	-63.04	-72.12
Free Cash Flow	44.25	32.59	47.88	94.32	101.24	92.26	105.55	120.77	138.17	158.08
WACC
PV LFCF						58.04	61.47	65.10	68.95	73.02
SUM PV LFCF										480.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.03
Free cash flow (t + 1)	161.24
Terminal Value	2,674.02
Present Value of Terminal Value	1,817.37

Intrinsic Value

Enterprise Value	2,297.89
Net Debt	16.79
Equity Value	2,281.10
Shares Outstanding	73.87
Equity Value Per Share	30.88