Discounted Cash Flow (DCF) Analysis Levered

Focus Financial Partners Inc. (FOCS)

$31.75

-0.50 (-1.55%)
All numbers are in Millions, Currency in USD
Stock DCF: 499.36 | 31.75 | 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 662.89910.881,218.341,361.321,797.952,314.752,980.103,836.694,939.496,359.29
Revenue (%)
Operating Cash Flow 69.09105.92194.77211.36313.92328.80423.31544.99701.64903.32
Operating Cash Flow (%)
Capital Expenditure -10.52-9.11-25.47-19.35-11.02-31.07-40-51.50-66.30-85.36
Capital Expenditure (%)
Free Cash Flow 58.5796.81169.30192.01302.90297.73383.31493.49635.34817.96

Weighted Average Cost Of Capital

Share price $ 31.75
Beta 1.282
Diluted Shares Outstanding 57.83
Cost of Debt
Tax Rate 76.61
After-tax Cost of Debt 0.48%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.928
Total Debt 2,670.99
Total Equity 1,836.14
Total Capital 4,507.13
Debt Weighting 59.26
Equity Weighting 40.74
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 662.89910.881,218.341,361.321,797.952,314.752,980.103,836.694,939.496,359.29
Operating Cash Flow 69.09105.92194.77211.36313.92328.80423.31544.99701.64903.32
Capital Expenditure -10.52-9.11-25.47-19.35-11.02-31.07-40-51.50-66.30-85.36
Free Cash Flow 58.5796.81169.30192.01302.90297.73383.31493.49635.34817.96
WACC
PV LFCF 285.38352.16434.56536.25661.74
SUM PV LFCF 2,270.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.33
Free cash flow (t + 1) 834.32
Terminal Value 35,807.75
Present Value of Terminal Value 28,968.83

Intrinsic Value

Enterprise Value 31,238.92
Net Debt 2,360.31
Equity Value 28,878.61
Shares Outstanding 57.83
Equity Value Per Share 499.36