Discounted Cash Flow (DCF) Analysis Levered

CME Group Inc. (CME)

$220.84

+1.39 (+0.63%)
All numbers are in Millions, Currency in USD
Stock DCF: 166.41 | 220.84 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 4,8684,883.604,689.705,019.405,578.905,781.515,991.486,209.086,434.586,668.27
Revenue (%)
Operating Cash Flow 2,672.802,715.602,402.403,056705.202,720.362,819.152,921.543,027.643,137.60
Operating Cash Flow (%)
Capital Expenditure -245.60-197.50-127.20-89.70-189.53-196.41-203.54-210.93-218.59-226.53
Capital Expenditure (%)
Free Cash Flow 2,427.202,518.102,275.202,966.30515.672,523.952,615.612,710.612,809.052,911.07

Weighted Average Cost Of Capital

Share price $ 220.84
Beta 0.484
Diluted Shares Outstanding 359.50
Cost of Debt
Tax Rate 23.31
After-tax Cost of Debt 3.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.557
Total Debt 3,425.40
Total Equity 79,391.98
Total Capital 82,817.38
Debt Weighting 4.14
Equity Weighting 95.86
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 4,8684,883.604,689.705,019.405,578.905,781.515,991.486,209.086,434.586,668.27
Operating Cash Flow 2,672.802,715.602,402.403,056705.202,720.362,819.152,921.543,027.643,137.60
Capital Expenditure -245.60-197.50-127.20-89.70-189.53-196.41-203.54-210.93-218.59-226.53
Free Cash Flow 2,427.202,518.102,275.202,966.30515.672,523.952,615.612,710.612,809.052,911.07
WACC
PV LFCF 2,371.462,309.112,248.402,189.292,131.73
SUM PV LFCF 11,250

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.43
Free cash flow (t + 1) 2,969.29
Terminal Value 67,026.82
Present Value of Terminal Value 49,082.68

Intrinsic Value

Enterprise Value 60,332.68
Net Debt 508.20
Equity Value 59,824.48
Shares Outstanding 359.50
Equity Value Per Share 166.41