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Discounted Cash Flow (DCF) Analysis Levered


White Mountains Insurance Group Ltd.

White Mountains Insurance Group Ltd. (WTM)

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 1,361.601,411.16440.00157.70373.79369.08373.84378.66383.55388.49393.51
Revenue (%)
Operating Cash Flow -101.03118.82182.38-155.0994.61-31.11-24.30-24.61-24.93-25.25-25.58
Operating Cash Flow (%)
Capital Expenditure -11.71-4.52-----2.21-2.23-2.26-2.29-2.32
Capital Expenditure (%)
Free Cash Flow -112.74114.30182.38-155.0994.61-31.11-26.51-26.85-27.19-27.54-27.90

Weighted Average Cost Of Capital

Share price $ 1,099.42
Diluted Shares Outstanding 3.18
Cost of Debt
Tax Rate 2.75
After-tax Cost of Debt -0.09
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.09
Total Debt 188.00
Total Equity 3,496.75
Total Capital 3,684.75
Debt Weighting 5.10
Equity Weighting 94.90
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 1,361.601,411.16440.00157.70373.79369.08373.84378.66383.55388.49393.51
Operating Cash Flow -101.03118.82182.38-155.0994.61-31.11-24.30-24.61-24.93-25.25-25.58
Capital Expenditure -11.71-4.52-----2.21-2.23-2.26-2.29-2.32
Free Cash Flow -112.74114.30182.38-155.0994.61-31.11-26.51-26.85-27.19-27.54-27.90
WACC
PV LFCF -25.00-23.88-22.81-21.79-20.82
SUM PV LFCF -6.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.03
Free cash flow (t + 1) 350.76
Terminal Value 17,278.75
Present Value of Terminal Value 12,893.43

Intrinsic Value

Enterprise Value 15,853.44
Net Debt -136.49
Equity Value 15,989.93
Shares Outstanding 3.18
Equity Value Per Share -294.35