Discounted Cash Flow (DCF) Analysis Levered

Stewart Information Services Corpor... (STC)

$47.76

-0.03 (-0.06%)
All numbers are in Millions, Currency in USD
Stock DCF: 412.75 | 47.76 | 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 1,955.721,907.671,940.012,288.433,305.793,815.344,403.425,082.155,865.496,769.58
Revenue (%)
Operating Cash Flow 108.0784.18166.36275.81390.29323.33373.16430.68497.06573.68
Operating Cash Flow (%)
Capital Expenditure -16.40-10.68-17.07-14.99-39.80-31.57-36.44-42.05-48.53-56.01
Capital Expenditure (%)
Free Cash Flow 91.6773.50149.28260.81350.49291.76336.73388.63448.53517.67

Weighted Average Cost Of Capital

Share price $ 47.76
Beta 1.096
Diluted Shares Outstanding 27.24
Cost of Debt
Tax Rate 25.52
After-tax Cost of Debt 0.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.689
Total Debt 632.91
Total Equity 1,300.89
Total Capital 1,933.79
Debt Weighting 32.73
Equity Weighting 67.27
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 1,955.721,907.671,940.012,288.433,305.793,815.344,403.425,082.155,865.496,769.58
Operating Cash Flow 108.0784.18166.36275.81390.29323.33373.16430.68497.06573.68
Capital Expenditure -16.40-10.68-17.07-14.99-39.80-31.57-36.44-42.05-48.53-56.01
Free Cash Flow 91.6773.50149.28260.81350.49291.76336.73388.63448.53517.67
WACC
PV LFCF 275.14299.46325.93354.74386.10
SUM PV LFCF 1,641.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.04
Free cash flow (t + 1) 528.02
Terminal Value 13,069.80
Present Value of Terminal Value 9,748.11

Intrinsic Value

Enterprise Value 11,389.48
Net Debt 146.99
Equity Value 11,242.49
Shares Outstanding 27.24
Equity Value Per Share 412.75