Discounted Cash Flow (DCF) Analysis Levered

Intercontinental Exchange, Inc. (ICE)

$105.34

+0.26 (+0.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 145.58 | 105.34 | 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 5,8346,2766,5478,2449,16810,291.6011,552.9112,968.7914,558.2116,342.42
Revenue (%)
Operating Cash Flow 2,0852,5332,6592,8813,1233,822.794,291.304,817.225,407.616,070.35
Operating Cash Flow (%)
Capital Expenditure -357-280-305-410-452-517.52-580.95-652.15-732.07-821.79
Capital Expenditure (%)
Free Cash Flow 1,7282,2532,3542,4712,6713,305.273,710.354,165.084,675.545,248.56

Weighted Average Cost Of Capital

Share price $ 105.34
Beta 0.901
Diluted Shares Outstanding 566
Cost of Debt
Tax Rate 28.78
After-tax Cost of Debt 2.13%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.002
Total Debt 14,170
Total Equity 59,622.44
Total Capital 73,792.44
Debt Weighting 19.20
Equity Weighting 80.80
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 5,8346,2766,5478,2449,16810,291.6011,552.9112,968.7914,558.2116,342.42
Operating Cash Flow 2,0852,5332,6592,8813,1233,822.794,291.304,817.225,407.616,070.35
Capital Expenditure -357-280-305-410-452-517.52-580.95-652.15-732.07-821.79
Free Cash Flow 1,7282,2532,3542,4712,6713,305.273,710.354,165.084,675.545,248.56
WACC
PV LFCF 3,092.793,248.653,412.373,584.333,764.96
SUM PV LFCF 17,103.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.87
Free cash flow (t + 1) 5,353.53
Terminal Value 109,928.70
Present Value of Terminal Value 78,855.51

Intrinsic Value

Enterprise Value 95,958.62
Net Debt 13,563
Equity Value 82,395.62
Shares Outstanding 566
Equity Value Per Share 145.58