Discounted Cash Flow (DCF) Analysis Levered
Ares Management Corporation (ARES)
$102.87
-2.02 (-1.93%)
All numbers are in Millions, Currency in USD
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 | 958.46 | 1,765.44 | 1,764.05 | 4,212.09 | 3,055.44 | 4,548.26 | 6,770.43 | 10,078.30 | 15,002.32 | 22,332.10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | -1,417.10 | -2,083.02 | -425.66 | -2,596.04 | -734.11 | -3,416.93 | -5,086.35 | -7,571.43 | -11,270.64 | -16,777.21 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -18.42 | -16.80 | -15.94 | -27.23 | -35.80 | -50.89 | -75.76 | -112.77 | -167.87 | -249.89 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | -1,435.52 | -2,099.82 | -441.60 | -2,623.27 | -769.91 | -3,467.82 | -5,162.11 | -7,684.20 | -11,438.51 | -17,027.10 |
Weighted Average Cost Of Capital
| Share price | $ 102.87 |
|---|---|
| Beta | 1.335 |
| Diluted Shares Outstanding | 175.51 |
| Cost of Debt | |
| Tax Rate | 14.07 |
| After-tax Cost of Debt | 3.11% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.876 |
| Total Debt | 13,334.24 |
| Total Equity | 18,054.80 |
| Total Capital | 31,389.03 |
| Debt Weighting | 42.48 |
| Equity Weighting | 57.52 |
| 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 | 958.46 | 1,765.44 | 1,764.05 | 4,212.09 | 3,055.44 | 4,548.26 | 6,770.43 | 10,078.30 | 15,002.32 | 22,332.10 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | -1,417.10 | -2,083.02 | -425.66 | -2,596.04 | -734.11 | -3,416.93 | -5,086.35 | -7,571.43 | -11,270.64 | -16,777.21 |
| Capital Expenditure | -18.42 | -16.80 | -15.94 | -27.23 | -35.80 | -50.89 | -75.76 | -112.77 | -167.87 | -249.89 |
| Free Cash Flow | -1,435.52 | -2,099.82 | -441.60 | -2,623.27 | -769.91 | -3,467.82 | -5,162.11 | -7,684.20 | -11,438.51 | -17,027.10 |
| WACC | ||||||||||
| PV LFCF | -3,223.48 | -4,460.30 | -6,171.69 | -8,539.71 | -11,816.34 | |||||
| SUM PV LFCF | -34,211.52 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.58 |
| Free cash flow (t + 1) | -17,367.64 |
| Terminal Value | -311,248.01 |
| Present Value of Terminal Value | -215,997.58 |
Intrinsic Value
| Enterprise Value | -250,209.10 |
|---|---|
| Net Debt | 12,219.61 |
| Equity Value | -262,428.70 |
| Shares Outstanding | 175.51 |
| Equity Value Per Share | -1,495.23 |