Discounted Cash Flow (DCF) Analysis Unlevered
MarketAxess Holdings Inc. (MKTX)
$377.46
-7.04 (-1.83%)
All numbers are in Millions, Currency in USD
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 | 435.56 | 511.35 | 689.12 | 698.95 | 718.30 | 819.51 | 934.97 | 1,066.71 | 1,217.01 | 1,388.48 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 241.17 | 290.08 | 418.34 | 395.01 | 406.14 | 468.53 | 534.54 | 609.86 | 695.78 | 793.82 |
| EBITDA (%) | ||||||||||
| EBIT | 218.09 | 257.42 | 375.50 | 334.77 | 338.99 | 409.74 | 467.47 | 533.33 | 608.48 | 694.21 |
| EBIT (%) | ||||||||||
| Depreciation | 23.08 | 32.65 | 42.84 | 60.25 | 67.15 | 58.79 | 67.07 | 76.52 | 87.31 | 99.61 |
| 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 | 246.32 | 270.12 | 460.86 | 517.93 | 514.54 | 527.74 | 602.10 | 686.93 | 783.72 | 894.15 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 57.54 | 62.02 | 359.49 | 472.23 | 78.45 | 255.67 | 291.69 | 332.79 | 379.68 | 433.17 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 29.37 | 19.29 | 44.35 | 71.22 | 55.26 | 57.09 | 65.14 | 74.32 | 84.79 | 96.73 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | -47.59 | -34.70 | -45.63 | -50.62 | -38.73 | -60.59 | -69.13 | -78.87 | -89.98 | -102.66 |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 377.46 |
|---|---|
| Beta | 0.765 |
| 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 | 7.111 |
| Total Debt | 82.68 |
| Total Equity | 14,208.73 |
| Total Capital | 14,291.40 |
| Debt Weighting | 0.58 |
| Equity Weighting | 99.42 |
| 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 | 435.56 | 511.35 | 689.12 | 698.95 | 718.30 | 819.51 | 934.97 | 1,066.71 | 1,217.01 | 1,388.48 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 241.17 | 290.08 | 418.34 | 395.01 | 406.14 | 468.53 | 534.54 | 609.86 | 695.78 | 793.82 |
| EBIT | 218.09 | 257.42 | 375.50 | 334.77 | 338.99 | 409.74 | 467.47 | 533.33 | 608.48 | 694.21 |
| Tax Rate | 20.74% | 20.40% | 20.03% | 22.77% | 26.03% | 22.00% | 22.00% | 22.00% | 22.00% | 22.00% |
| EBIAT | 172.85 | 204.90 | 300.29 | 258.54 | 250.74 | 319.61 | 364.65 | 416.02 | 474.64 | 541.52 |
| Depreciation | 23.08 | 32.65 | 42.84 | 60.25 | 67.15 | 58.79 | 67.07 | 76.52 | 87.31 | 99.61 |
| Accounts Receivable | - | -4.48 | -297.47 | -112.73 | 393.78 | -177.22 | -36.02 | -41.10 | -46.89 | -53.50 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -10.07 | 25.06 | 26.86 | -15.95 | 1.83 | 8.04 | 9.18 | 10.47 | 11.95 |
| Capital Expenditure | -47.59 | -34.70 | -45.63 | -50.62 | -38.73 | -60.59 | -69.13 | -78.87 | -89.98 | -102.66 |
| UFCF | 148.34 | 188.30 | 25.09 | 182.30 | 656.99 | 142.43 | 334.61 | 381.76 | 435.55 | 496.92 |
| WACC | ||||||||||
| PV UFCF | 133.02 | 291.88 | 311.02 | 331.41 | 353.14 | |||||
| SUM PV UFCF | 1,420.48 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.07 |
| Free cash flow (t + 1) | 506.86 |
| Terminal Value | 9,997.17 |
| Present Value of Terminal Value | 7,104.58 |
Intrinsic Value
| Enterprise Value | 8,525.05 |
|---|---|
| Net Debt | -348.07 |
| Equity Value | 8,873.12 |
| Shares Outstanding | 37.64 |
| Equity Value Per Share | 235.72 |