Discounted Cash Flow (DCF) Analysis Unlevered

MGIC Investment Corporation (MTG)

$12.955

-0.16 (-1.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.35 | 12.955 | 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 1,066.051,123.851,213.981,199.151,185.671,218.571,252.371,287.111,322.811,359.51
Revenue (%)
EBITDA 905.96955.36949.42676.67939.15935.46961.41988.071,015.481,043.65
EBITDA (%)
EBIT 841.53897.14900.63618.86873.14872.99897.21922.09947.67973.96
EBIT (%)
Depreciation 64.4358.2248.7857.8166.0162.4764.2065.9867.8169.69
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 5,090.415,310.915,899.746,949.55284.694,970.785,108.665,250.385,396.025,545.71
Total Cash (%)
Account Receivables 106.3991.3778.75151.7566.90104.54107.44110.42113.48116.63
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ----------
Accounts Payable (%)
Capital Expenditure -16.07-14.24-5.64-3.31-4.12-9.41-9.67-9.94-10.22-10.50
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 12.955
Beta 1.438
Diluted Shares Outstanding 351.31
Cost of Debt
Tax Rate 20.80
After-tax Cost of Debt 4.93%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.561
Total Debt 1,146.71
Total Equity 4,551.20
Total Capital 5,697.91
Debt Weighting 20.13
Equity Weighting 79.87
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 1,066.051,123.851,213.981,199.151,185.671,218.571,252.371,287.111,322.811,359.51
EBITDA 905.96955.36949.42676.67939.15935.46961.41988.071,015.481,043.65
EBIT 841.53897.14900.63618.86873.14872.99897.21922.09947.67973.96
Tax Rate 54.65%20.62%20.54%20.24%20.80%27.37%27.37%27.37%27.37%27.37%
EBIAT 381.63712.16715.60493.63691.50634.05651.64669.71688.29707.38
Depreciation 64.4358.2248.7857.8166.0162.4764.2065.9867.8169.69
Accounts Receivable -15.0212.62-73.0184.85-37.63-2.90-2.98-3.06-3.15
Inventories ----------
Accounts Payable ----------
Capital Expenditure -16.07-14.24-5.64-3.31-4.12-9.41-9.67-9.94-10.22-10.50
UFCF 429.99771.17771.37475.12838.25649.47703.26722.77742.82763.43
WACC
PV UFCF 593.50587.28551.56518.01486.50
SUM PV UFCF 2,736.85

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.43
Free cash flow (t + 1) 778.70
Terminal Value 10,480.42
Present Value of Terminal Value 6,678.77

Intrinsic Value

Enterprise Value 9,415.63
Net Debt 862.02
Equity Value 8,553.60
Shares Outstanding 351.31
Equity Value Per Share 24.35