Discounted Cash Flow (DCF) Analysis Unlevered

Artisan Partners Asset Management I... (APAM)

$31.98

+0.81 (+2.60%)
All numbers are in Millions, Currency in USD
Stock DCF: 34.65 | 31.98 | undervalue

Operating Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 828.63798.95899.571,227.24993.281,058.781,128.581,202.991,282.311,366.86
Revenue (%)
EBITDA 222.80201.63290.84461.28287.91319.81340.90363.37387.33412.87
EBITDA (%)
EBIT 217.13195.40284.22454.35280.12312.29332.88354.83378.23403.16
EBIT (%)
Depreciation 5.676.236.626.937.807.528.018.549.119.71
Depreciation (%)

Balance Sheet Data

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Total Cash 193.01143.63198.82200.14143.25199.26212.40226.41241.33257.24
Total Cash (%)
Account Receivables 73.2683.51103.47122.26103.61108.40115.54123.16131.28139.94
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 21.4854.08134.0949.1850.7770.7075.3680.3385.6291.27
Accounts Payable (%)
Capital Expenditure -13.84-17.78-3.10-5.97-19.56-14.18-15.11-16.11-17.17-18.30
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 31.98
Beta 1.828
Diluted Shares Outstanding 62.50
Cost of Debt
Tax Rate 33.70
After-tax Cost of Debt 2.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.121
Total Debt 319.90
Total Equity 1,998.70
Total Capital 2,318.60
Debt Weighting 13.80
Equity Weighting 86.20
Wacc

Build Up Free Cash

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 828.63798.95899.571,227.24993.281,058.781,128.581,202.991,282.311,366.86
EBITDA 222.80201.63290.84461.28287.91319.81340.90363.37387.33412.87
EBIT 217.13195.40284.22454.35280.12312.29332.88354.83378.23403.16
Tax Rate 47.54%41.87%42.43%38.99%33.70%40.90%40.90%40.90%40.90%40.90%
EBIAT 113.90113.59163.63277.21185.73184.55196.72209.69223.52238.25
Depreciation 5.676.236.626.937.807.528.018.549.119.71
Accounts Receivable --10.26-19.96-18.7818.65-4.79-7.15-7.62-8.12-8.66
Inventories ----------
Accounts Payable -32.6080.01-84.911.5919.934.664.975.305.65
Capital Expenditure -13.84-17.78-3.10-5.97-19.56-14.18-15.11-16.11-17.17-18.30
UFCF 105.73124.38227.21174.48194.21193.03187.13199.47212.62226.64
WACC
PV UFCF 174.33152.62146.92141.43136.15
SUM PV UFCF 751.46

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.73
Free cash flow (t + 1) 231.18
Terminal Value 2,648.07
Present Value of Terminal Value 1,590.75

Intrinsic Value

Enterprise Value 2,342.21
Net Debt 176.65
Equity Value 2,165.56
Shares Outstanding 62.50
Equity Value Per Share 34.65