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Discounted Cash Flow (DCF) Analysis Levered


MarketAxess Holdings Inc.

MarketAxess Holdings Inc. (MKTX)

Financial Services

Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 238.73262.77303.11367.73393.44435.57491.72555.10626.65707.43798.62
Revenue (%)
Operating Cash Flow 90.89109.94124.5289.76168.04223.93196.29221.60250.16282.41318.81
Operating Cash Flow (%)
Capital Expenditure -23.28-14.79-15.40-18.50-25.57-47.61-35.16-39.69-44.81-50.58-57.10
Capital Expenditure (%)
Free Cash Flow 67.6195.15109.1271.27142.46176.32161.14181.91205.35231.82261.71

Weighted Average Cost Of Capital

Share price $ 369.06
Diluted Shares Outstanding 36.96
Cost of Debt
Tax Rate 20.74
After-tax Cost of Debt -0.99
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.97
Total Debt 1.70
Total Equity 13,639.72
Total Capital 13,641.42
Debt Weighting 0.01
Equity Weighting 99.99
Wacc

Build Up Free Cash Flow

Year
A/P
2013
Actual
2014
Actual
2015
Actual
2016
Actual
2017
Actual
2018
Actual
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Revenue 238.73262.77303.11367.73393.44435.57491.72555.10626.65707.43798.62
Operating Cash Flow 90.89109.94124.5289.76168.04223.93196.29221.60250.16282.41318.81
Capital Expenditure -23.28-14.79-15.40-18.50-25.57-47.61-35.16-39.69-44.81-50.58-57.10
Free Cash Flow 67.6195.15109.1271.27142.46176.32161.14181.91205.35231.82261.71
WACC
PV LFCF 161.14174.96189.97206.27223.97
SUM PV LFCF 1,296.17

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.97
Free cash flow (t + 1) 325.88
Terminal Value -1,086,257.51
Present Value of Terminal Value -894,113.33

Intrinsic Value

Enterprise Value -892,560.64
Net Debt -244.62
Equity Value -892,316.02
Shares Outstanding 36.96
Equity Value Per Share -20,164.23