Discounted Cash Flow (DCF) Analysis Levered

Newmark Group, Inc. (NMRK)

$8.4

-0.16 (-1.87%)

All numbers are in Millions, Currency in USD

Stock DCF: 57.66 | 8.4 | 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	1,596.45	2,047.58	2,218.13	1,905	2,906.44	3,451.69	4,099.23	4,868.25	5,781.53	6,866.15
Revenue (%)
Operating Cash Flow	852.22	-332.37	986.76	-777.69	-59.91	267.51	317.70	377.30	448.08	532.14
Operating Cash Flow (%)
Capital Expenditure	-21.12	-24.12	-36.02	-19.83	-37.53	-44.58	-52.94	-62.87	-74.66	-88.67
Capital Expenditure (%)
Free Cash Flow	831.09	-356.49	950.74	-797.52	-97.44	222.94	264.76	314.43	373.41	443.47

Weighted Average Cost Of Capital

Share price	$ 8.4
Beta	1.736
Diluted Shares Outstanding	179.69
Cost of Debt
Tax Rate	38.52
After-tax Cost of Debt	0.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity	11.745
Total Debt	2,322.52
Total Equity	1,509.40
Total Capital	3,831.92
Debt Weighting	60.61
Equity Weighting	39.39
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	1,596.45	2,047.58	2,218.13	1,905	2,906.44	3,451.69	4,099.23	4,868.25	5,781.53	6,866.15
Operating Cash Flow	852.22	-332.37	986.76	-777.69	-59.91	267.51	317.70	377.30	448.08	532.14
Capital Expenditure	-21.12	-24.12	-36.02	-19.83	-37.53	-44.58	-52.94	-62.87	-74.66	-88.67
Free Cash Flow	831.09	-356.49	950.74	-797.52	-97.44	222.94	264.76	314.43	373.41	443.47
WACC
PV LFCF						212	239.41	270.38	305.34	344.83
SUM PV LFCF										1,371.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.16
Free cash flow (t + 1)	452.33
Terminal Value	14,314.39
Present Value of Terminal Value	11,130.63

Intrinsic Value

Enterprise Value	12,502.59
Net Debt	2,142.39
Equity Value	10,360.20
Shares Outstanding	179.69
Equity Value Per Share	57.66