Discounted Cash Flow (DCF) Analysis Unlevered
White Mountains Insurance Group, Lt... (WTM)
$1441.81
+20.12 (+1.42%)
All numbers are in Millions, Currency in USD
Operating Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 369.10 | 893.40 | 1,180.70 | 944.80 | 1,157.90 | 1,669.64 | 2,407.54 | 3,471.57 | 5,005.84 | 7,218.19 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| EBITDA | -110 | 491.20 | 761.10 | -129.40 | 879.70 | 507.30 | 731.50 | 1,054.79 | 1,520.96 | 2,193.15 |
| EBITDA (%) | ||||||||||
| EBIT | -135.70 | 461.40 | 717.70 | -193 | 865.70 | 434.12 | 625.98 | 902.63 | 1,301.55 | 1,876.78 |
| EBIT (%) | ||||||||||
| Depreciation | 25.70 | 29.80 | 43.40 | 63.60 | 14 | 73.18 | 105.52 | 152.16 | 219.40 | 316.37 |
| Depreciation (%) |
Balance Sheet Data
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Total Cash | 324.50 | 362.20 | 354.10 | 725.20 | 1,179.10 | 1,125.46 | 1,622.86 | 2,340.09 | 3,374.30 | 4,865.59 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Cash (%) | ||||||||||
| Account Receivables | 87.40 | 77.50 | 87 | 956.30 | 1,086.80 | 784.06 | 1,130.58 | 1,630.24 | 2,350.73 | 3,389.65 |
| Account Receivables (%) | ||||||||||
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Inventories (%) | ||||||||||
| Accounts Payable | 111.40 | 102.30 | 113.40 | 560 | 251.10 | 441.43 | 636.53 | 917.84 | 1,323.49 | 1,908.41 |
| Accounts Payable (%) | ||||||||||
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| Capital Expenditure (%) |
Weighted Average Cost Of Capital
| Share price | $ 1,441.81 |
|---|---|
| Beta | 0.404 |
| Diluted Shares Outstanding | 3.08 |
| Cost of Debt | |
| Tax Rate | 630.66 |
| After-tax Cost of Debt | -37.20% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 5.622 |
| Total Debt | 575.20 |
| Total Equity | 4,438.57 |
| Total Capital | 5,013.77 |
| Debt Weighting | 11.47 |
| Equity Weighting | 88.53 |
| Wacc |
Build Up Free Cash
Year A/P | 2018 Actual | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
| Revenue | 369.10 | 893.40 | 1,180.70 | 944.80 | 1,157.90 | 1,669.64 | 2,407.54 | 3,471.57 | 5,005.84 | 7,218.19 |
|---|---|---|---|---|---|---|---|---|---|---|
| EBITDA | -110 | 491.20 | 761.10 | -129.40 | 879.70 | 507.30 | 731.50 | 1,054.79 | 1,520.96 | 2,193.15 |
| EBIT | -135.70 | 461.40 | 717.70 | -193 | 865.70 | 434.12 | 625.98 | 902.63 | 1,301.55 | 1,876.78 |
| Tax Rate | 20.76% | -2.32% | -9.84% | 8.81% | 630.66% | 129.61% | 129.61% | 129.61% | 129.61% | 129.61% |
| EBIAT | -107.52 | 472.11 | 788.34 | -176 | -4,593.89 | -128.55 | -185.37 | -267.30 | -385.43 | -555.77 |
| Depreciation | 25.70 | 29.80 | 43.40 | 63.60 | 14 | 73.18 | 105.52 | 152.16 | 219.40 | 316.37 |
| Accounts Receivable | - | 9.90 | -9.50 | -869.30 | -130.50 | 302.74 | -346.52 | -499.66 | -720.49 | -1,038.92 |
| Inventories | - | - | - | - | - | - | - | - | - | - |
| Accounts Payable | - | -9.10 | 11.10 | 446.60 | -308.90 | 190.33 | 195.09 | 281.32 | 405.64 | 584.92 |
| Capital Expenditure | - | - | - | - | - | - | - | - | - | - |
| UFCF | - | - | - | - | - | 437.70 | -231.27 | -333.49 | -480.87 | -693.39 |
| WACC | ||||||||||
| PV UFCF | 434.61 | -228.02 | -326.48 | -467.45 | -669.29 | |||||
| SUM PV UFCF | -1,256.64 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 0.71 |
| Free cash flow (t + 1) | -707.26 |
| Terminal Value | 54,826.47 |
| Present Value of Terminal Value | 52,920.91 |
Intrinsic Value
| Enterprise Value | 51,664.27 |
|---|---|
| Net Debt | 320.20 |
| Equity Value | 51,344.07 |
| Shares Outstanding | 3.08 |
| Equity Value Per Share | 16,678.43 |