Discounted Cash Flow (DCF) Analysis Levered

RenaissanceRe Holdings Ltd. (RNR)

$128.74

-7.10 (-5.23%)
All numbers are in Millions, Currency in USD
Stock DCF: 6,618.82 | 128.74 | 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 2,095.652,056.474,178.735,155.125,265.406,934.999,133.9812,030.2515,844.8820,869.09
Revenue (%)
Operating Cash Flow 1,045.791,221.702,137.201,992.731,234.823,086.934,065.765,354.957,052.949,289.33
Operating Cash Flow (%)
Capital Expenditure ----------
Capital Expenditure (%)
Free Cash Flow -----3,086.934,065.765,354.957,052.949,289.33

Weighted Average Cost Of Capital

Share price $ 128.74
Beta 0.332
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 5.450
Total Debt 1,168.35
Total Equity 5,760.86
Total Capital 6,929.21
Debt Weighting 16.86
Equity Weighting 83.14
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 2,095.652,056.474,178.735,155.125,265.406,934.999,133.9812,030.2515,844.8820,869.09
Operating Cash Flow 1,045.791,221.702,137.201,992.731,234.823,086.934,065.765,354.957,052.949,289.33
Capital Expenditure ----------
Free Cash Flow -----3,086.934,065.765,354.957,052.949,289.33
WACC
PV LFCF 2,946.393,703.974,656.345,853.597,358.68
SUM PV LFCF 24,518.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.77
Free cash flow (t + 1) 9,475.12
Terminal Value 342,062.12
Present Value of Terminal Value 270,969.41

Intrinsic Value

Enterprise Value 295,488.38
Net Debt -690.67
Equity Value 296,179.05
Shares Outstanding 44.75
Equity Value Per Share 6,618.82