Discounted Cash Flow (DCF) Analysis Levered
RenaissanceRe Holdings Ltd. (RNR)
$127.7
+2.40 (+1.92%)
All numbers are in Millions, Currency in USD
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 | 2,095.65 | 2,056.47 | 4,178.73 | 5,155.12 | 5,265.40 | 6,934.99 | 9,133.98 | 12,030.25 | 15,844.88 | 20,869.09 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,045.79 | 1,221.70 | 2,137.20 | 1,992.73 | 1,234.82 | 3,086.93 | 4,065.76 | 5,354.95 | 7,052.94 | 9,289.33 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | - | - | - | - | - | 3,086.93 | 4,065.76 | 5,354.95 | 7,052.94 | 9,289.33 |
Weighted Average Cost Of Capital
Share price | $ 127.7 |
---|---|
Beta | 0.528 |
Diluted Shares Outstanding | 44.75 |
Cost of Debt | |
Tax Rate | 64.81 |
After-tax Cost of Debt | 1.43% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 5.259 |
Total Debt | 1,168.35 |
Total Equity | 5,714.32 |
Total Capital | 6,882.67 |
Debt Weighting | 16.98 |
Equity Weighting | 83.02 |
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 | 2,095.65 | 2,056.47 | 4,178.73 | 5,155.12 | 5,265.40 | 6,934.99 | 9,133.98 | 12,030.25 | 15,844.88 | 20,869.09 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,045.79 | 1,221.70 | 2,137.20 | 1,992.73 | 1,234.82 | 3,086.93 | 4,065.76 | 5,354.95 | 7,052.94 | 9,289.33 |
Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
Free Cash Flow | - | - | - | - | - | 3,086.93 | 4,065.76 | 5,354.95 | 7,052.94 | 9,289.33 |
WACC | ||||||||||
PV LFCF | 2,355.53 | 2,965.71 | 3,733.96 | 4,701.23 | 5,919.06 | |||||
SUM PV LFCF | 24,648.56 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 4.61 |
Free cash flow (t + 1) | 9,475.12 |
Terminal Value | 363,031.44 |
Present Value of Terminal Value | 289,786.56 |
Intrinsic Value
Enterprise Value | 314,435.11 |
---|---|
Net Debt | -690.67 |
Equity Value | 315,125.78 |
Shares Outstanding | 44.75 |
Equity Value Per Share | 7,042.23 |