Discounted Cash Flow (DCF) Analysis Unlevered

RenaissanceRe Holdings Ltd. (RNR)

$127.7

+2.40 (+1.92%)
All numbers are in Millions, Currency in USD
Stock DCF: -2,215.21 | 127.7 | overvalue

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 2,095.652,056.474,178.735,155.125,265.406,934.999,133.9812,030.2515,844.8820,869.09
Revenue (%)
EBITDA -120.47268.25765.41832.37-24.28572.81754.44993.661,308.731,723.72
EBITDA (%)
EBIT -151.71268.13824.38815.72-3.29572.67754.25993.411,308.411,723.29
EBIT (%)
Depreciation 31.240.12-58.9616.65-20.990.140.190.240.320.42
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 2,353.463,694.445,945.356,730.557,157.409,718.9912,800.7616,859.7122,205.7029,246.83
Total Cash (%)
Account Receivables 2,994.404,165.835,469.566,388.938,430.6510,546.6913,890.9018,295.5224,096.7931,737.57
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable 989.091,902.062,830.693,488.353,860.964,832.636,3658,383.2511,041.4714,542.58
Accounts Payable (%)
Capital Expenditure ----------
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 127.7
Beta 0.528
Diluted Shares Outstanding 44.75
Cost of Debt
Tax Rate 64.81
After-tax Cost of Debt 1.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 5.259
Total Debt 1,168.35
Total Equity 5,714.32
Total Capital 6,882.67
Debt Weighting 16.98
Equity Weighting 83.02
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 2,095.652,056.474,178.735,155.125,265.406,934.999,133.9812,030.2515,844.8820,869.09
EBITDA -120.47268.25765.41832.37-24.28572.81754.44993.661,308.731,723.72
EBIT -151.71268.13824.38815.72-3.29572.67754.25993.411,308.411,723.29
Tax Rate 32.24%13.42%22.60%23.45%64.81%31.30%31.30%31.30%31.30%31.30%
EBIAT -102.80232.14638.04624.46-1.16393.40518.14682.44898.831,183.83
Depreciation 31.240.12-58.9616.65-20.990.140.190.240.320.42
Accounts Receivable --1,171.43-1,303.74-919.37-2,041.72-2,116.03-3,344.22-4,404.62-5,801.27-7,640.78
Inventories ----------
Accounts Payable -912.97928.64657.66372.61971.671,532.362,018.262,658.223,501.11
Capital Expenditure ----------
UFCF ------750.82-1,293.53-1,703.69-2,243.90-2,955.41
WACC
PV UFCF -717.74-1,182.03-1,488.23-1,873.75-2,359.13
SUM PV UFCF -7,620.87

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.61
Free cash flow (t + 1) -3,014.52
Terminal Value -115,498.91
Present Value of Terminal Value -92,195.96

Intrinsic Value

Enterprise Value -99,816.83
Net Debt -690.67
Equity Value -99,126.16
Shares Outstanding 44.75
Equity Value Per Share -2,215.21