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	2,095.65	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	$ 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	2,095.65	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						2,946.39	3,703.97	4,656.34	5,853.59	7,358.68
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