Discounted Cash Flow (DCF) Analysis Unlevered

MarketAxess Holdings Inc. (MKTX)

$276.65

+0.22 (+0.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 217.74 | 276.65 | overvalue

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 435.56511.35689.12698.95718.30819.51934.971,066.711,217.011,388.48
Revenue (%)
EBITDA 241.17290.08418.34395.01406.14468.53534.54609.86695.78793.82
EBITDA (%)
EBIT 218.09257.42375.50334.77338.99409.74467.47533.33608.48694.21
EBIT (%)
Depreciation 23.0832.6542.8460.2567.1558.7967.0776.5287.3199.61
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 246.32270.12460.86517.93464.75516.38589.14672.15766.85874.90
Total Cash (%)
Account Receivables 57.5462.02359.49472.23465.86344.07392.54447.85510.95582.95
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 29.3719.2944.3571.2255.2657.0965.1474.3284.7996.73
Accounts Payable (%)
Capital Expenditure -47.59-34.70-45.63-50.62-51.87-63.59-72.55-82.77-94.43-107.74
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 276.65
Beta 0.790
Diluted Shares Outstanding 37.64
Cost of Debt
Tax Rate 26.03
After-tax Cost of Debt 0.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.472
Total Debt 82.68
Total Equity 10,413.94
Total Capital 10,496.61
Debt Weighting 0.79
Equity Weighting 99.21
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 435.56511.35689.12698.95718.30819.51934.971,066.711,217.011,388.48
EBITDA 241.17290.08418.34395.01406.14468.53534.54609.86695.78793.82
EBIT 218.09257.42375.50334.77338.99409.74467.47533.33608.48694.21
Tax Rate 20.74%20.40%20.03%22.77%26.03%22.00%22.00%22.00%22.00%22.00%
EBIAT 172.85204.90300.29258.54250.74319.61364.65416.02474.64541.52
Depreciation 23.0832.6542.8460.2567.1558.7967.0776.5287.3199.61
Accounts Receivable --4.48-297.47-112.736.36121.80-48.48-55.31-63.10-71.99
Inventories ----------
Accounts Payable --10.0725.0626.86-15.951.838.049.1810.4711.95
Capital Expenditure -47.59-34.70-45.63-50.62-51.87-63.59-72.55-82.77-94.43-107.74
UFCF 148.34188.3025.09182.30256.43438.44318.74363.65414.88473.34
WACC
PV UFCF 408.16276.23293.38311.59330.94
SUM PV UFCF 1,620.29

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.42
Free cash flow (t + 1) 482.81
Terminal Value 8,907.89
Present Value of Terminal Value 6,228.01

Intrinsic Value

Enterprise Value 7,848.30
Net Debt -348.07
Equity Value 8,196.37
Shares Outstanding 37.64
Equity Value Per Share 217.74