Discounted Cash Flow (DCF) Analysis Levered

Focus Financial Partners Inc. (FOCS)

$52.99

-0.01 (-0.02%)

All numbers are in Millions, Currency in USD

Stock DCF: 188.61 | 52.99 | undervalue

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	910.88	1,218.34	1,361.32	1,797.95	2,143.32	2,661.86	3,305.85	4,105.64	5,098.93	6,332.53
Revenue (%)
Operating Cash Flow	105.92	194.77	211.36	313.92	288.60	394.31	489.70	608.18	755.32	938.05
Operating Cash Flow (%)
Capital Expenditure	-9.11	-25.47	-19.35	-11.02	-21.02	-32.50	-40.37	-50.13	-62.26	-77.32
Capital Expenditure (%)
Free Cash Flow	96.81	169.30	192.01	302.90	267.58	361.80	449.34	558.05	693.06	860.73

Weighted Average Cost Of Capital

Share price	$ 52.99
Beta	1.281
Diluted Shares Outstanding	65.81
Cost of Debt
Tax Rate	29.76
After-tax Cost of Debt	2.51%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.484
Total Debt	2,799.64
Total Equity	3,487.28
Total Capital	6,286.93
Debt Weighting	44.53
Equity Weighting	55.47
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	910.88	1,218.34	1,361.32	1,797.95	2,143.32	2,661.86	3,305.85	4,105.64	5,098.93	6,332.53
Operating Cash Flow	105.92	194.77	211.36	313.92	288.60	394.31	489.70	608.18	755.32	938.05
Capital Expenditure	-9.11	-25.47	-19.35	-11.02	-21.02	-32.50	-40.37	-50.13	-62.26	-77.32
Free Cash Flow	96.81	169.30	192.01	302.90	267.58	361.80	449.34	558.05	693.06	860.73
WACC
PV LFCF						338.36	392.98	456.43	530.11	615.70
SUM PV LFCF										2,333.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.93
Free cash flow (t + 1)	877.94
Terminal Value	17,808.18
Present Value of Terminal Value	12,738.60

Intrinsic Value

Enterprise Value	15,072.18
Net Debt	2,659.67
Equity Value	12,412.51
Shares Outstanding	65.81
Equity Value Per Share	188.61