Discounted Cash Flow (DCF) Analysis Levered
Ares Capital Corporation (ARCC)
$19.47
-0.22 (-1.12%)
All numbers are in Millions, Currency in USD
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 | 883 | 1,048 | 1,018 | 725 | 1,903 | 2,614.36 | 3,591.64 | 4,934.24 | 6,778.71 | 9,312.67 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -2,048 | 304 | -1,210 | -557 | -2,459 | -2,759.90 | -3,791.58 | -5,208.92 | -7,156.07 | -9,831.09 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | - | - | - | - | - | -2,759.90 | -3,791.58 | -5,208.92 | -7,156.07 | -9,831.09 |
Weighted Average Cost Of Capital
| Share price | $ 19.47 |
|---|---|
| Beta | 1.069 |
| Diluted Shares Outstanding | 446 |
| Cost of Debt | |
| Tax Rate | 1.82 |
| After-tax Cost of Debt | 3.28% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 8.669 |
| Total Debt | 11,137 |
| Total Equity | 8,683.62 |
| Total Capital | 19,820.62 |
| Debt Weighting | 56.19 |
| Equity Weighting | 43.81 |
| 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 | 883 | 1,048 | 1,018 | 725 | 1,903 | 2,614.36 | 3,591.64 | 4,934.24 | 6,778.71 | 9,312.67 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -2,048 | 304 | -1,210 | -557 | -2,459 | -2,759.90 | -3,791.58 | -5,208.92 | -7,156.07 | -9,831.09 |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| Free Cash Flow | - | - | - | - | - | -2,759.90 | -3,791.58 | -5,208.92 | -7,156.07 | -9,831.09 |
| WACC | ||||||||||
| PV LFCF | -2,612.55 | -3,397.53 | -4,418.37 | -5,745.94 | -7,472.39 | |||||
| SUM PV LFCF | -23,646.79 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.64 |
| Free cash flow (t + 1) | -10,027.71 |
| Terminal Value | -275,486.60 |
| Present Value of Terminal Value | -209,391.24 |
Intrinsic Value
| Enterprise Value | -233,038.03 |
|---|---|
| Net Debt | 10,765 |
| Equity Value | -243,803.03 |
| Shares Outstanding | 446 |
| Equity Value Per Share | -546.64 |