Discounted Cash Flow (DCF) Analysis Unlevered

RenaissanceRe Holdings Ltd. (RNR-PE)

$25.24

-0.00 (-0.02%)

All numbers are in Millions, Currency in USD

Stock DCF: -241.01 | 25.24 | overvalue

Operating Data

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	1,726.87	2,095.65	2,056.47	4,207.49	5,155.12	7,044.55	9,626.48	13,154.73	17,976.13	24,564.65
Revenue (%)
EBITDA	574.75	-120.47	268.25	765.41	832.37	1,055.51	1,442.37	1,971.02	2,693.43	3,680.61
EBITDA (%)
EBIT	545.45	-151.71	268.13	824.38	815.72	1,025.71	1,401.64	1,915.37	2,617.38	3,576.69
EBIT (%)
Depreciation	29.30	31.24	0.12	-58.96	16.65	29.80	40.73	55.65	76.05	103.92
Depreciation (%)

Balance Sheet Data

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Total Cash	1,789.54	2,353.46	3,694.44	1,379.07	6,730.55	7,874.64	10,760.82	14,704.82	20,094.35	27,459.22
Total Cash (%)
Account Receivables	1,372.73	2,994.40	4,165.83	5,959.92	7,302.24	9,978.61	13,635.92	18,633.69	25,463.21	34,795.86
Account Receivables (%)
Inventories	-	-	-	-	-	-	-	-	-	-
Inventories (%)
Accounts Payable	673.98	989.09	1,902.06	2,506.51	3,071.04	4,196.62	5,734.75	7,836.62	10,708.85	14,633.80
Accounts Payable (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price	$ 25.24
Beta	0.477
Diluted Shares Outstanding	317.56
Cost of Debt
Tax Rate	23.45
After-tax Cost of Debt	1.70%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.816
Total Debt	2,272.53
Total Equity	8,015.19
Total Capital	10,287.72
Debt Weighting	22.09
Equity Weighting	77.91
Wacc

Build Up Free Cash

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	1,726.87	2,095.65	2,056.47	4,207.49	5,155.12	7,044.55	9,626.48	13,154.73	17,976.13	24,564.65
EBITDA	574.75	-120.47	268.25	765.41	832.37	1,055.51	1,442.37	1,971.02	2,693.43	3,680.61
EBIT	545.45	-151.71	268.13	824.38	815.72	1,025.71	1,401.64	1,915.37	2,617.38	3,576.69
Tax Rate	20.21%	32.24%	13.42%	22.60%	23.45%	22.38%	22.38%	22.38%	22.38%	22.38%
EBIAT	435.19	-102.80	232.14	638.04	624.46	796.10	1,087.89	1,486.62	2,031.48	2,776.05
Depreciation	29.30	31.24	0.12	-58.96	16.65	29.80	40.73	55.65	76.05	103.92
Accounts Receivable	-	-1,621.67	-1,171.43	-1,794.09	-1,342.32	-2,676.38	-3,657.31	-4,997.77	-6,829.52	-9,332.64
Inventories	-	-	-	-	-	-	-	-	-	-
Accounts Payable	-	315.11	912.97	604.46	564.53	1,125.58	1,538.12	2,101.87	2,872.24	3,924.95
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
UFCF	-	-	-	-	-	-724.89	-990.57	-1,353.63	-1,849.75	-2,527.71
WACC
PV UFCF						-690.96	-900.02	-1,172.33	-1,527.03	-1,989.04
SUM PV UFCF										-6,279.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.91
Free cash flow (t + 1)	-2,578.27
Terminal Value	-88,600.31
Present Value of Terminal Value	-69,718.94

Intrinsic Value

Enterprise Value	-75,998.31
Net Debt	535.72
Equity Value	-76,534.03
Shares Outstanding	317.56
Equity Value Per Share	-241.01