Discounted Cash Flow (DCF) Analysis Levered

Virtus Investment Partners, Inc. (VRTS)

$236.16

+3.84 (+1.65%)
All numbers are in Millions, Currency in USD
Stock DCF: 120.09 | 236.16 | overvalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 562.26603.23974.67881.72845.27961.901,094.621,245.651,417.531,613.12
Revenue (%)
Operating Cash Flow -36.72-226.10665.73132.6783.1294.59107.65122.50139.40158.63
Operating Cash Flow (%)
Capital Expenditure -7.56-1.04-5.84-6.58-6.05-6.88-7.83-8.91-10.14-11.54
Capital Expenditure (%)
Free Cash Flow -44.28-227.15659.89126.0977.0887.7199.81113.58129.26147.09

Weighted Average Cost Of Capital

Share price $ 236.16
Beta 1.531
Diluted Shares Outstanding 7.38
Cost of Debt
Tax Rate 29.99
After-tax Cost of Debt 2.91%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.385
Total Debt 2,338.34
Total Equity 1,741.68
Total Capital 4,080.02
Debt Weighting 57.31
Equity Weighting 42.69
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 562.26603.23974.67881.72845.27961.901,094.621,245.651,417.531,613.12
Operating Cash Flow -36.72-226.10665.73132.6783.1294.59107.65122.50139.40158.63
Capital Expenditure -7.56-1.04-5.84-6.58-6.05-6.88-7.83-8.91-10.14-11.54
Free Cash Flow -44.28-227.15659.89126.0977.0887.7199.81113.58129.26147.09
WACC
PV LFCF 82.3387.9593.95100.36107.21
SUM PV LFCF 471.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.53
Free cash flow (t + 1) 150.03
Terminal Value 3,312.01
Present Value of Terminal Value 2,413.97

Intrinsic Value

Enterprise Value 2,885.78
Net Debt 2,000.14
Equity Value 885.64
Shares Outstanding 7.38
Equity Value Per Share 120.09