Discounted Cash Flow (DCF) Analysis Levered

Artisan Partners Asset Management I... (APAM)

$38.03

+0.89 (+2.40%)

All numbers are in Millions, Currency in USD

Stock DCF: 129.25 | 38.03 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	795.62	828.63	798.95	899.57	1,227.24	1,379.37	1,550.36	1,742.55	1,958.56	2,201.35
Revenue (%)
Operating Cash Flow	204.07	333.32	292.79	318.68	398.55	470.15	528.43	593.94	667.57	750.32
Operating Cash Flow (%)
Capital Expenditure	-5.84	-13.84	-17.78	-3.10	-5.97	-15.06	-16.93	-19.03	-21.39	-24.04
Capital Expenditure (%)
Free Cash Flow	198.24	319.48	275.01	315.58	392.58	455.09	511.50	574.91	646.18	726.28

Weighted Average Cost Of Capital

Share price	$ 38.03
Beta	1.790
Diluted Shares Outstanding	55.60
Cost of Debt
Tax Rate	38.99
After-tax Cost of Debt	2.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.845
Total Debt	299.75
Total Equity	2,114.47
Total Capital	2,414.22
Debt Weighting	12.42
Equity Weighting	87.58
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	795.62	828.63	798.95	899.57	1,227.24	1,379.37	1,550.36	1,742.55	1,958.56	2,201.35
Operating Cash Flow	204.07	333.32	292.79	318.68	398.55	470.15	528.43	593.94	667.57	750.32
Capital Expenditure	-5.84	-13.84	-17.78	-3.10	-5.97	-15.06	-16.93	-19.03	-21.39	-24.04
Free Cash Flow	198.24	319.48	275.01	315.58	392.58	455.09	511.50	574.91	646.18	726.28
WACC
PV LFCF						411.29	417.78	424.37	431.07	437.87
SUM PV LFCF										2,122.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.65
Free cash flow (t + 1)	740.81
Terminal Value	8,564.25
Present Value of Terminal Value	5,163.36

Intrinsic Value

Enterprise Value	7,285.74
Net Debt	99.61
Equity Value	7,186.13
Shares Outstanding	55.60
Equity Value Per Share	129.25