Discounted Cash Flow (DCF) Analysis Unlevered

Stewart Information Services Corpor... (STC)

$50.55

-0.18 (-0.35%)
All numbers are in Millions, Currency in USD
Stock DCF: 294.62 | 50.55 | 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 1,955.721,907.671,940.012,288.433,305.793,815.344,403.425,082.155,865.496,769.58
Revenue (%)
EBITDA 92.9289.84132.18225.58458.62305.26352.31406.61469.29541.62
EBITDA (%)
EBIT 67.0464.91109.65206.36422.24261.52301.83348.35402.05464.02
EBIT (%)
Depreciation 25.8824.9322.5319.2236.3943.7450.4858.2667.2477.60
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 174.54215.02354.14453.36503.57560.81647.25747.02862.16995.05
Total Cash (%)
Account Receivables 78.5271.467287.81119.34144.37166.62192.30221.94256.15
Account Receivables (%)
Inventories ----------
Inventories (%)
Accounts Payable ---225.18325.29375.43433.29500.08577.16666.12
Accounts Payable (%)
Capital Expenditure -16.40-10.68-17.07-14.99-39.80-31.57-36.44-42.05-48.53-56.01
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 50.55
Beta 1.113
Diluted Shares Outstanding 27.24
Cost of Debt
Tax Rate 25.52
After-tax Cost of Debt 0.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.895
Total Debt 632.91
Total Equity 1,376.88
Total Capital 2,009.79
Debt Weighting 31.49
Equity Weighting 68.51
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 1,955.721,907.671,940.012,288.433,305.793,815.344,403.425,082.155,865.496,769.58
EBITDA 92.9289.84132.18225.58458.62305.26352.31406.61469.29541.62
EBIT 67.0464.91109.65206.36422.24261.52301.83348.35402.05464.02
Tax Rate 35.18%34.48%32.79%29.11%25.52%31.41%31.41%31.41%31.41%31.41%
EBIAT 43.4542.5373.70146.30314.48179.37207.01238.92275.75318.25
Depreciation 25.8824.9322.5319.2236.3943.7450.4858.2667.2477.60
Accounts Receivable -7.05-0.54-15.81-31.53-25.03-22.25-25.68-29.64-34.21
Inventories ----------
Accounts Payable ----100.1150.1457.8766.7977.0888.96
Capital Expenditure -16.40-10.68-17.07-14.99-39.80-31.57-36.44-42.05-48.53-56.01
UFCF 52.9463.8478.61134.71379.64216.64256.67296.23341.89394.59
WACC
PV UFCF 203.84227.23246.76267.97291
SUM PV UFCF 1,236.80

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.28
Free cash flow (t + 1) 402.48
Terminal Value 9,403.76
Present Value of Terminal Value 6,934.96

Intrinsic Value

Enterprise Value 8,171.76
Net Debt 146.99
Equity Value 8,024.77
Shares Outstanding 27.24
Equity Value Per Share 294.62