Discounted Cash Flow (DCF) Analysis Levered

CME Group Inc. (CME)

$199.93

+3.02 (+1.53%)
All numbers are in Millions, Currency in USD
Stock DCF: 287.00 | 199.93 | undervalue

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 3,644.704,309.404,8684,883.604,689.705,012.705,357.955,726.986,121.426,543.03
Revenue (%)
Operating Cash Flow 1,840.402,440.802,672.802,715.602,402.402,695.562,881.223,079.663,291.773,518.49
Operating Cash Flow (%)
Capital Expenditure -81.90-116.70-245.60-197.50-127.20-167.99-179.56-191.93-205.15-219.28
Capital Expenditure (%)
Free Cash Flow 1,758.502,324.102,427.202,518.102,275.202,527.572,701.662,887.733,086.623,299.21

Weighted Average Cost Of Capital

Share price $ 199.93
Beta 0.470
Diluted Shares Outstanding 358.52
Cost of Debt
Tax Rate 21.85
After-tax Cost of Debt 3.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.962
Total Debt 3,445.10
Total Equity 71,679.70
Total Capital 75,124.80
Debt Weighting 4.59
Equity Weighting 95.41
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 3,644.704,309.404,8684,883.604,689.705,012.705,357.955,726.986,121.426,543.03
Operating Cash Flow 1,840.402,440.802,672.802,715.602,402.402,695.562,881.223,079.663,291.773,518.49
Capital Expenditure -81.90-116.70-245.60-197.50-127.20-167.99-179.56-191.93-205.15-219.28
Free Cash Flow 1,758.502,324.102,427.202,518.102,275.202,527.572,701.662,887.733,086.623,299.21
WACC
PV LFCF 2,409.272,454.692,500.962,548.102,596.13
SUM PV LFCF 12,509.14

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.91
Free cash flow (t + 1) 3,365.20
Terminal Value 115,642.49
Present Value of Terminal Value 90,998.24

Intrinsic Value

Enterprise Value 103,507.38
Net Debt 610.20
Equity Value 102,897.18
Shares Outstanding 358.52
Equity Value Per Share 287.00