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Discounted Cash Flow (DCF) Analysis Unlevered


MarketAxess Holdings Inc.

MarketAxess Holdings Inc. (MKTX)

Financial Services

Operating Data

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 (%)
EBITDA 127.79135.91166.44209.42221.03241.18269.36304.08343.28387.53437.48
EBITDA (%)
EBIT 114.74118.54147.89191.59201.75218.09242.12273.33308.56348.34393.24
EBIT (%)
Depreciation 13.0617.3718.5517.8419.2823.0927.2430.7534.7239.1944.24
Depreciation (%)

Balance Sheet Data

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
Total Cash --237.43168.24167.01246.32274.23309.58349.48394.53445.39
Total Cash (%)
Account Receivables 34.1633.8540.4750.6752.6457.5466.2874.8384.4795.36107.65
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 12.8711.9612.2515.1514.2429.3623.3126.3129.7033.5337.85
Accounts Payable (%)
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 (%)

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

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
EBITDA 127.79135.91166.44209.42221.03241.18269.36304.08343.28387.53437.48
EBIT 114.74118.54147.89191.59201.75218.09242.12273.33308.56348.34393.24
Tax Rate 33.75%36.89%35.07%34.15%26.60%20.74%31.20%31.20%31.20%31.20%31.20%
EBIAT 76.0274.8196.03126.16148.08172.86166.58188.05212.29239.66270.55
Depreciation 13.0617.3718.5517.8419.2823.0927.2430.7534.7239.1944.24
Accounts Receivable -0.32-6.62-10.21-1.97-4.90-8.74-8.54-9.65-10.89-12.29
Inventories -----------
Accounts Payable --0.910.292.90-0.9115.12-6.053.003.393.834.32
Capital Expenditure --8.480.603.107.0822.03-12.454.535.125.786.52
UFCF 89.0883.10108.85139.79171.56228.19166.58217.80245.87277.57313.34
WACC
PV UFCF 166.58209.48227.45246.97268.16
SUM PV UFCF 1,552.70

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 -24,144.06