Discounted Cash Flow (DCF) Analysis Levered

Virtus Investment Partners, Inc. (VRTS)

$165.74

-2.94 (-1.74%)
All numbers are in Millions, Currency in USD
Stock DCF: -119.57 | 165.74 | overvalue

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 424.39551.35562.26603.90974.671,220.031,527.171,911.622,392.852,995.22
Revenue (%)
Operating Cash Flow -182.69-62.56-36.72-226.10665.73-73.36-91.82-114.94-143.87-180.09
Operating Cash Flow (%)
Capital Expenditure -1.51-11.72-7.56-7.70-12.43-15.55-19.47-24.37-30.51-38.19
Capital Expenditure (%)
Free Cash Flow -184.20-74.27-44.28-233.80653.30-88.91-111.29-139.31-174.38-218.28

Weighted Average Cost Of Capital

Share price $ 165.74
Beta 1.646
Diluted Shares Outstanding 7.98
Cost of Debt
Tax Rate 41.15
After-tax Cost of Debt 15,386,458.12%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.733
Total Debt 0
Total Equity 1,321.94
Total Capital 1,321.94
Debt Weighting 0.00
Equity Weighting 100.00
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 424.39551.35562.26603.90974.671,220.031,527.171,911.622,392.852,995.22
Operating Cash Flow -182.69-62.56-36.72-226.10665.73-73.36-91.82-114.94-143.87-180.09
Capital Expenditure -1.51-11.72-7.56-7.70-12.43-15.55-19.47-24.37-30.51-38.19
Free Cash Flow -184.20-74.27-44.28-233.80653.30-88.91-111.29-139.31-174.38-218.28
WACC
PV LFCF -77.43-84.40-92.01-100.29-109.33
SUM PV LFCF -463.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 14.83
Free cash flow (t + 1) -222.64
Terminal Value -1,735.33
Present Value of Terminal Value -869.17

Intrinsic Value

Enterprise Value -1,332.63
Net Debt -378.90
Equity Value -953.73
Shares Outstanding 7.98
Equity Value Per Share -119.57