Discounted Cash Flow (DCF) Analysis Unlevered

AXIS Capital Holdings Limited (AXS)

$57.14

-0.35 (-0.61%)

All numbers are in Millions, Currency in USD

Stock DCF: 99.13 | 57.14 | 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	5,119.57	5,185.47	4,760.89	5,321.41	433.95	339.59	265.76	207.97	162.75	127.36
Revenue (%)
EBITDA	90.76	342.32	-113.27	670.12	376.55	71.56	56	43.82	34.30	26.84
EBITDA (%)
EBIT	80.97	267.09	-179.06	603.14	308.27	57.96	45.36	35.50	27.78	21.74
EBIT (%)
Depreciation	9.80	75.23	65.80	66.98	68.29	13.60	10.64	8.33	6.52	5.10
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	13,409.41	13,747.78	13,106.53	13,188.85	12,148.62	2,614.70	2,046.18	1,601.28	1,253.11	980.64
Total Cash (%)
Account Receivables	6,902.16	7,390.69	7,736.35	8,351.41	9,214.78	1,847.57	1,445.85	1,131.48	885.46	692.93
Account Receivables (%)
Inventories	-597.21	-604.89	-555.36	-620.75	-50.62	-39.61	-31	-24.26	-18.99	-14.86
Inventories (%)
Accounts Payable	1,338.99	1,349.08	1,092.04	1,324.62	1,522.76	306.25	239.66	187.55	146.77	114.86
Accounts Payable (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 57.14
Beta	0.847
Diluted Shares Outstanding	85.67
Cost of Debt
Tax Rate	8.24
After-tax Cost of Debt	3.87%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.555
Total Debt	1,496.28
Total Equity	4,895.13
Total Capital	6,391.41
Debt Weighting	23.41
Equity Weighting	76.59
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	5,119.57	5,185.47	4,760.89	5,321.41	433.95	339.59	265.76	207.97	162.75	127.36
EBITDA	90.76	342.32	-113.27	670.12	376.55	71.56	56	43.82	34.30	26.84
EBIT	80.97	267.09	-179.06	603.14	308.27	57.96	45.36	35.50	27.78	21.74
Tax Rate	-243.02%	4.14%	9.54%	4.67%	8.24%	-43.28%	-43.28%	-43.28%	-43.28%	-43.28%
EBIAT	277.73	256.03	-161.98	574.98	282.85	83.05	64.99	50.86	39.80	31.15
Depreciation	9.80	75.23	65.80	66.98	68.29	13.60	10.64	8.33	6.52	5.10
Accounts Receivable	-	-488.52	-345.67	-615.05	-863.37	7,367.21	401.72	314.37	246.02	192.53
Inventories	-	7.69	-49.53	65.39	-570.13	-11.01	-8.61	-6.74	-5.27	-4.13
Accounts Payable	-	10.09	-257.04	232.58	198.14	-1,216.51	-66.59	-52.11	-40.78	-31.91
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
UFCF	-	-	-	-	-	6,236.35	402.15	314.71	246.28	192.73
WACC
PV UFCF						5,803.41	348.25	253.61	184.69	134.50
SUM PV UFCF										6,724.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.46
Free cash flow (t + 1)	196.59
Terminal Value	3,600.52
Present Value of Terminal Value	2,512.64

Intrinsic Value

Enterprise Value	9,237.12
Net Debt	744.86
Equity Value	8,492.25
Shares Outstanding	85.67
Equity Value Per Share	99.13