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
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 | 1,955.72 | 1,907.67 | 1,940.01 | 2,288.43 | 3,305.79 | 3,815.34 | 4,403.42 | 5,082.15 | 5,865.49 | 6,769.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | 92.92 | 89.84 | 132.18 | 225.58 | 458.62 | 305.26 | 352.31 | 406.61 | 469.29 | 541.62 |
| EBITDA (%) | ||||||||||
| EBIT | 67.04 | 64.91 | 109.65 | 206.36 | 422.24 | 261.52 | 301.83 | 348.35 | 402.05 | 464.02 |
| EBIT (%) | ||||||||||
| Depreciation | 25.88 | 24.93 | 22.53 | 19.22 | 36.39 | 43.74 | 50.48 | 58.26 | 67.24 | 77.60 |
| 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 | 174.54 | 215.02 | 354.14 | 453.36 | 503.57 | 560.81 | 647.25 | 747.02 | 862.16 | 995.05 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 78.52 | 71.46 | 72 | 87.81 | 119.34 | 144.37 | 166.62 | 192.30 | 221.94 | 256.15 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | - | - | - | 225.18 | 325.29 | 375.43 | 433.29 | 500.08 | 577.16 | 666.12 |
| 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 | 1,955.72 | 1,907.67 | 1,940.01 | 2,288.43 | 3,305.79 | 3,815.34 | 4,403.42 | 5,082.15 | 5,865.49 | 6,769.58 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | 92.92 | 89.84 | 132.18 | 225.58 | 458.62 | 305.26 | 352.31 | 406.61 | 469.29 | 541.62 |
| EBIT | 67.04 | 64.91 | 109.65 | 206.36 | 422.24 | 261.52 | 301.83 | 348.35 | 402.05 | 464.02 |
| Tax Rate | 35.18% | 34.48% | 32.79% | 29.11% | 25.52% | 31.41% | 31.41% | 31.41% | 31.41% | 31.41% |
| EBIAT | 43.45 | 42.53 | 73.70 | 146.30 | 314.48 | 179.37 | 207.01 | 238.92 | 275.75 | 318.25 |
| Depreciation | 25.88 | 24.93 | 22.53 | 19.22 | 36.39 | 43.74 | 50.48 | 58.26 | 67.24 | 77.60 |
| Accounts Receivable | - | 7.05 | -0.54 | -15.81 | -31.53 | -25.03 | -22.25 | -25.68 | -29.64 | -34.21 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | - | - | - | 100.11 | 50.14 | 57.87 | 66.79 | 77.08 | 88.96 |
| Capital Expenditure | -16.40 | -10.68 | -17.07 | -14.99 | -39.80 | -31.57 | -36.44 | -42.05 | -48.53 | -56.01 |
| UFCF | 52.94 | 63.84 | 78.61 | 134.71 | 379.64 | 216.64 | 256.67 | 296.23 | 341.89 | 394.59 |
| WACC | ||||||||||
| PV UFCF | 203.84 | 227.23 | 246.76 | 267.97 | 291 | |||||
| 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 |