Discounted Cash Flow (DCF) Analysis Levered


Markel Corporation

Markel Corporation (MKL)

$1072.66
-21.02 (-1.92%)

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 4,323.085,133.665,369.815,611.996,061.516,841.029,526.1210,922.6512,523.9114,359.9116,465.07
Revenue (%)
Operating Cash Flow 745.73716.66651.36534.82858.31892.751,274.591,458.171,671.941,917.052,198.09
Operating Cash Flow (%)
Capital Expenditure 47.5582.1480.0163.4274.56106.72123.84146.36167.82192.42220.63
Capital Expenditure (%)
Free Cash Flow 793.29798.80731.37598.24932.87999.471,398.431,604.541,839.762,109.472,418.72

Weighted Average Cost Of Capital

Weighted Average Cost Of Capital

Share price $ 1,072.66
Diluted Shares Outstanding 13.94
Cost of Debt
Tax Rate 21.28
After-tax Cost of Debt 3.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.25
Total Debt 4,463.43
Total Equity 14,954.76
Total Capital 15,884.00
Debt Weighting 5.85
Equity Weighting 94.15
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 4,323.085,133.665,369.815,611.996,061.516,841.029,526.1210,922.6512,523.9114,359.9116,465.07
Operating Cash Flow 745.73716.66651.36534.82858.31892.751,274.591,458.171,671.941,917.052,198.09
Capital Expenditure 47.5582.1480.0163.4274.56106.72123.84146.36167.82192.42220.63
Free Cash Flow 793.29798.80731.37598.24932.87999.471,398.431,604.541,839.762,109.472,418.72
WACC
PV LFCF 1,604.541,703.641,808.871,920.59
SUM PV LFCF 8,327.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.99
Free cash flow (t + 1) 7,697.92
Terminal Value 192,930.30
Present Value of Terminal Value 131,365.92

Intrinsic Value

Enterprise Value 147,941.47
Net Debt 4,206.67
Equity Value 152,148.14
Shares Outstanding 13.94
Equity Value Per Share 3,978.02