Discounted Cash Flow (DCF) Analysis Levered

Intercontinental Exchange, Inc. (ICE)

$109.2895

-0.06 (-0.06%)

All numbers are in Millions, Currency in USD

Stock DCF: 155.76 | 109.2895 | 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	6,276	6,547	8,244	9,168	9,636	10,757.42	12,009.34	13,406.97	14,967.24	16,709.10
Revenue (%)
Operating Cash Flow	2,533	2,659	2,881	3,123	3,554	4,020.42	4,488.31	5,010.65	5,593.78	6,244.77
Operating Cash Flow (%)
Capital Expenditure	-280	-305	-410	-452	-225	-459.53	-513	-572.71	-639.36	-713.76
Capital Expenditure (%)
Free Cash Flow	2,253	2,354	2,471	2,671	3,329	3,560.90	3,975.31	4,437.94	4,954.42	5,531.01

Weighted Average Cost Of Capital

Share price	$ 109.2,895
Beta	0.917
Diluted Shares Outstanding	561
Cost of Debt
Tax Rate	20.02
After-tax Cost of Debt	2.68%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.968
Total Debt	18,376
Total Equity	61,311.41
Total Capital	79,687.41
Debt Weighting	23.06
Equity Weighting	76.94
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	6,276	6,547	8,244	9,168	9,636	10,757.42	12,009.34	13,406.97	14,967.24	16,709.10
Operating Cash Flow	2,533	2,659	2,881	3,123	3,554	4,020.42	4,488.31	5,010.65	5,593.78	6,244.77
Capital Expenditure	-280	-305	-410	-452	-225	-459.53	-513	-572.71	-639.36	-713.76
Free Cash Flow	2,253	2,354	2,471	2,671	3,329	3,560.90	3,975.31	4,437.94	4,954.42	5,531.01
WACC
PV LFCF						3,335.73	3,488.47	3,648.20	3,815.24	3,989.93
SUM PV LFCF										18,277.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.75
Free cash flow (t + 1)	5,641.63
Terminal Value	118,771.10
Present Value of Terminal Value	85,678.40

Intrinsic Value

Enterprise Value	103,955.96
Net Debt	16,577
Equity Value	87,378.96
Shares Outstanding	561
Equity Value Per Share	155.76