Discounted Cash Flow (DCF) Analysis Levered

Investors Title Company (ITIC)

$149.2

+0.20 (+0.13%)

All numbers are in Millions, Currency in USD

Stock DCF: 655.57 | 149.2 | 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	156.26	183.50	236.41	329.50	283.39	334.15	394.01	464.59	547.81	645.93
Revenue (%)
Operating Cash Flow	24.39	20.92	34.10	51.93	36.20	46.76	55.13	65.01	76.65	90.38
Operating Cash Flow (%)
Capital Expenditure	-1.86	-1.49	-3.20	-6.53	-5.68	-4.91	-5.79	-6.82	-8.04	-9.48
Capital Expenditure (%)
Free Cash Flow	22.53	19.43	30.89	45.40	30.52	41.85	49.35	58.19	68.61	80.90

Weighted Average Cost Of Capital

Share price	$ 149.2
Beta	0.719
Diluted Shares Outstanding	1.90
Cost of Debt
Tax Rate	20.61
After-tax Cost of Debt	3.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.874
Total Debt	6.84
Total Equity	283.18
Total Capital	290.02
Debt Weighting	2.36
Equity Weighting	97.64
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	156.26	183.50	236.41	329.50	283.39	334.15	394.01	464.59	547.81	645.93
Operating Cash Flow	24.39	20.92	34.10	51.93	36.20	46.76	55.13	65.01	76.65	90.38
Capital Expenditure	-1.86	-1.49	-3.20	-6.53	-5.68	-4.91	-5.79	-6.82	-8.04	-9.48
Free Cash Flow	22.53	19.43	30.89	45.40	30.52	41.85	49.35	58.19	68.61	80.90
WACC
PV LFCF						26.70	29.21	31.95	34.96	38.24
SUM PV LFCF										234.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.78
Free cash flow (t + 1)	82.52
Terminal Value	1,427.60
Present Value of Terminal Value	981.56

Intrinsic Value

Enterprise Value	1,215.80
Net Debt	-28.47
Equity Value	1,244.28
Shares Outstanding	1.90
Equity Value Per Share	655.57