Discounted Cash Flow (DCF) Analysis Levered

Artisan Partners Asset Management I... (APAM)

$30.17

-0.78 (-2.52%)

All numbers are in Millions, Currency in USD

Stock DCF: 73.97 | 30.17 | 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	828.63	798.95	899.57	1,227.24	993.30	1,058.79	1,128.61	1,203.02	1,282.35	1,366.90
Revenue (%)
Operating Cash Flow	333.32	292.79	318.68	398.55	312.61	373.22	397.82	424.05	452.02	481.82
Operating Cash Flow (%)
Capital Expenditure	-13.84	-17.78	-3.10	-5.97	-6.64	-11.42	-12.18	-12.98	-13.84	-14.75
Capital Expenditure (%)
Free Cash Flow	319.48	275.01	315.58	392.58	305.97	361.79	385.65	411.07	438.18	467.07

Weighted Average Cost Of Capital

Share price	$ 30.17
Beta	1.828
Diluted Shares Outstanding	62.50
Cost of Debt
Tax Rate	33.68
After-tax Cost of Debt	2.05%
Risk-Free Rate
Market Risk Premium
Cost of Equity	12.127
Total Debt	319.90
Total Equity	1,885.58
Total Capital	2,205.48
Debt Weighting	14.50
Equity Weighting	85.50
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	828.63	798.95	899.57	1,227.24	993.30	1,058.79	1,128.61	1,203.02	1,282.35	1,366.90
Operating Cash Flow	333.32	292.79	318.68	398.55	312.61	373.22	397.82	424.05	452.02	481.82
Capital Expenditure	-13.84	-17.78	-3.10	-5.97	-6.64	-11.42	-12.18	-12.98	-13.84	-14.75
Free Cash Flow	319.48	275.01	315.58	392.58	305.97	361.79	385.65	411.07	438.18	467.07
WACC
PV LFCF						326.91	314.87	303.27	292.10	281.34
SUM PV LFCF										1,518.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.67
Free cash flow (t + 1)	476.41
Terminal Value	5,494.94
Present Value of Terminal Value	3,309.89

Intrinsic Value

Enterprise Value	4,828.38
Net Debt	205.10
Equity Value	4,623.28
Shares Outstanding	62.50
Equity Value Per Share	73.97