Discounted Cash Flow (DCF) Analysis Levered

RenaissanceRe Holdings Ltd. (RNR-PE)

$25.24

-0.00 (-0.02%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,056.66 | 25.24 | undervalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	1,726.87	2,095.65	2,056.47	4,207.49	5,155.12	7,044.55	9,626.48	13,154.73	17,976.13	24,564.65
Revenue (%)
Operating Cash Flow	469.83	1,045.79	1,221.70	1,914.65	2,345.88	3,205.68	4,380.61	5,986.17	8,180.19	11,178.34
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	3,205.68	4,380.61	5,986.17	8,180.19	11,178.34

Weighted Average Cost Of Capital

Share price	$ 25.24
Beta	0.477
Diluted Shares Outstanding	317.56
Cost of Debt
Tax Rate	23.45
After-tax Cost of Debt	1.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.816
Total Debt	2,272.53
Total Equity	8,015.19
Total Capital	10,287.72
Debt Weighting	22.09
Equity Weighting	77.91
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	1,726.87	2,095.65	2,056.47	4,207.49	5,155.12	7,044.55	9,626.48	13,154.73	17,976.13	24,564.65
Operating Cash Flow	469.83	1,045.79	1,221.70	1,914.65	2,345.88	3,205.68	4,380.61	5,986.17	8,180.19	11,178.34
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	3,205.68	4,380.61	5,986.17	8,180.19	11,178.34
WACC
PV LFCF						3,055.65	3,980.16	5,184.40	6,752.98	8,796.16
SUM PV LFCF										27,769.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.91
Free cash flow (t + 1)	11,401.91
Terminal Value	391,818.23
Present Value of Terminal Value	308,318.94

Intrinsic Value

Enterprise Value	336,088.28
Net Debt	535.72
Equity Value	335,552.57
Shares Outstanding	317.56
Equity Value Per Share	1,056.66