Discounted Cash Flow (DCF) Analysis Levered

MarketAxess Holdings Inc. (MKTX)

$390.175

+5.66 (+1.47%)

All numbers are in Millions, Currency in USD

Stock DCF: 268.95 | 390.175 | overvalue

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	435.56	511.35	689.12	698.95	718.30	819.51	934.97	1,066.71	1,217.01	1,388.48
Revenue (%)
Operating Cash Flow	223.92	265.93	404.49	282.09	289.23	397.85	453.90	517.86	590.82	674.07
Operating Cash Flow (%)
Capital Expenditure	-47.59	-34.70	-45.63	-50.62	-51.87	-63.59	-72.55	-82.77	-94.43	-107.74
Capital Expenditure (%)
Free Cash Flow	176.32	231.24	358.86	231.48	237.36	334.26	381.36	435.09	496.39	566.33

Weighted Average Cost Of Capital

Share price	$ 390.175
Beta	0.765
Diluted Shares Outstanding	37.64
Cost of Debt
Tax Rate	26.03
After-tax Cost of Debt	0.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.158
Total Debt	82.68
Total Equity	14,687.36
Total Capital	14,770.03
Debt Weighting	0.56
Equity Weighting	99.44
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	435.56	511.35	689.12	698.95	718.30	819.51	934.97	1,066.71	1,217.01	1,388.48
Operating Cash Flow	223.92	265.93	404.49	282.09	289.23	397.85	453.90	517.86	590.82	674.07
Capital Expenditure	-47.59	-34.70	-45.63	-50.62	-51.87	-63.59	-72.55	-82.77	-94.43	-107.74
Free Cash Flow	176.32	231.24	358.86	231.48	237.36	334.26	381.36	435.09	496.39	566.33
WACC
PV LFCF						312.04	332.34	353.97	377	401.53
SUM PV LFCF										1,776.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.12
Free cash flow (t + 1)	577.66
Terminal Value	11,282.36
Present Value of Terminal Value	7,999.21

Intrinsic Value

Enterprise Value	9,776.09
Net Debt	-348.07
Equity Value	10,124.16
Shares Outstanding	37.64
Equity Value Per Share	268.95