Discounted Cash Flow (DCF) Analysis Unlevered

Artisan Partners Asset Management I... (APAM)

$38.03

+0.89 (+2.40%)
All numbers are in Millions, Currency in USD
Stock DCF: 63.04 | 38.03 | undervalue

Operating Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 795.62828.63798.95899.571,227.241,379.371,550.361,742.551,958.562,201.35
Revenue (%)
EBITDA 486.85222.80201.63290.84461.28505.49568.16638.59717.75806.72
EBITDA (%)
EBIT 481.56217.13195.40284.22454.35496.03557.52626.63704.31791.62
EBIT (%)
Depreciation 5.305.676.236.626.939.4710.6411.9613.4415.11
Depreciation (%)

Balance Sheet Data

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Total Cash 159.17193.01143.63198.82200.14275309.09347.41390.48438.88
Total Cash (%)
Account Receivables 93.4673.2683.52103.47122.26144.85162.80182.99205.67231.17
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 24.8421.4854.08134.0949.1886.6197.35109.42122.98138.23
Accounts Payable (%)
Capital Expenditure -5.84-13.84-17.78-3.10-5.97-15.06-16.93-19.03-21.39-24.04
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 38.03
Beta 1.790
Diluted Shares Outstanding 55.60
Cost of Debt
Tax Rate 38.99
After-tax Cost of Debt 2.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity 11.845
Total Debt 299.75
Total Equity 2,114.47
Total Capital 2,414.22
Debt Weighting 12.42
Equity Weighting 87.58
Wacc

Build Up Free Cash

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 795.62828.63798.95899.571,227.241,379.371,550.361,742.551,958.562,201.35
EBITDA 486.85222.80201.63290.84461.28505.49568.16638.59717.75806.72
EBIT 481.56217.13195.40284.22454.35496.03557.52626.63704.31791.62
Tax Rate 91.32%47.54%41.87%42.43%38.99%52.43%52.43%52.43%52.43%52.43%
EBIAT 41.81113.90113.59163.63277.21235.97265.22298.10335.05376.59
Depreciation 5.305.676.236.626.939.4710.6411.9613.4415.11
Accounts Receivable -20.20-10.26-19.96-18.78-22.59-17.96-20.18-22.68-25.50
Inventories ----------
Accounts Payable --3.3532.6080.01-84.9137.4410.7412.0713.5615.25
Capital Expenditure -5.83-13.84-17.78-3.10-5.97-15.06-16.93-19.03-21.39-24.04
UFCF 41.27122.58124.38227.21174.48245.22251.71282.91317.99357.40
WACC
PV UFCF 221.62205.59208.83212.13215.48
SUM PV UFCF 1,063.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.65
Free cash flow (t + 1) 364.55
Terminal Value 4,214.48
Present Value of Terminal Value 2,540.90

Intrinsic Value

Enterprise Value 3,604.55
Net Debt 99.61
Equity Value 3,504.94
Shares Outstanding 55.60
Equity Value Per Share 63.04