Discounted Cash Flow (DCF) Analysis Levered

AXIS Capital Holdings Limited (AXS)

$57.61

+0.43 (+0.75%)

All numbers are in Millions, Currency in USD

Stock DCF: 2.81 | 57.61 | overvalue

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	5,119.57	5,185.47	4,760.89	5,321.41	433.95	339.59	265.76	207.97	162.75	127.36
Revenue (%)
Operating Cash Flow	10.77	199	343.50	1,114.82	692.22	130.22	101.91	79.75	62.41	48.84
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	130.22	101.91	79.75	62.41	48.84

Weighted Average Cost Of Capital

Share price	$ 57.61
Beta	0.847
Diluted Shares Outstanding	85.67
Cost of Debt
Tax Rate	8.24
After-tax Cost of Debt	3.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.596
Total Debt	1,496.28
Total Equity	4,935.39
Total Capital	6,431.67
Debt Weighting	23.26
Equity Weighting	76.74
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	5,119.57	5,185.47	4,760.89	5,321.41	433.95	339.59	265.76	207.97	162.75	127.36
Operating Cash Flow	10.77	199	343.50	1,114.82	692.22	130.22	101.91	79.75	62.41	48.84
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	130.22	101.91	79.75	62.41	48.84
WACC
PV LFCF						121.13	88.18	64.19	46.73	34.02
SUM PV LFCF										354.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.50
Free cash flow (t + 1)	49.82
Terminal Value	905.74
Present Value of Terminal Value	630.90

Intrinsic Value

Enterprise Value	985.17
Net Debt	744.86
Equity Value	240.30
Shares Outstanding	85.67
Equity Value Per Share	2.81