Discounted Cash Flow (DCF) Analysis Unlevered


MarketAxess Holdings Inc.

MarketAxess Holdings Inc. (MKTX)

$496.76
4.22 (+0.86%)

Operating Data

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 238.73262.77303.11369.94397.51435.59511.38581.18660.51750.67853.14
Revenue (%)
EBITDA 120.32135.91166.44209.43221.05235.65283.56314.54357.47406.26461.72
EBITDA (%)
EBIT 107.26118.54147.89191.59201.77212.57250.88281.70320.15363.85413.52
EBIT (%)
Depreciation 13.0617.3718.5517.8319.2823.0932.6832.8437.3242.4148.20
Depreciation (%)

Balance Sheet Data

Year
A/P
2013
Projected
2014
Projected
2015
Projected
2016
Projected
2017
Projected
2018
Projected
2019
Projected
2020
Projected
2021
Projected
2022
Projected
2023
Projected
Total Cash 200.44233.79284.44362.66406.53486.42500.59561.77638.45725.60824.65
Total Cash (%)
Account Receivables 34.1633.8540.4750.6852.6357.5462.0377.0687.5899.54113.13
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 14.6811.9612.2515.1314.2329.3619.2827.3731.1135.3640.18
Accounts Payable (%)
Capital Expenditure 15.334.624.796.4012.0835.8912.2720.9223.7827.0230.71
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 496.76
Diluted Shares Outstanding 37.96
Cost of Debt
Tax Rate 20.40
After-tax Cost of Debt 3.98%
Risk-Free Rate
Market Risk Premium
Cost of Equity 3.97
Total Debt -
Total Equity 18,855.02
Total Capital 18,855.02
Debt Weighting 0.00
Equity Weighting 100.00
Wacc

Build Up Free Cash

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 238.73262.77303.11369.94397.51435.59511.38581.18660.51750.67853.14
EBITDA 120.32135.91166.44209.43221.05235.65283.56314.54357.47406.26461.72
EBIT 107.26118.54147.89191.59201.77212.57250.88281.70320.15363.85413.52
Tax Rate 29.14%36.89%35.07%34.15%26.60%20.74%20.40%29.00%29.00%29.00%29.00%
EBIAT 76.0074.8196.03126.17148.09168.48199.70200.01227.31258.34293.60
Depreciation 13.0617.3718.5517.8319.2823.0932.6832.8437.3242.4148.20
Accounts Receivable -0.32-6.62-10.22-1.95-4.91-4.49-15.03-10.52-11.96-13.59
Inventories -----------
Accounts Payable --2.730.292.89-0.9015.13-10.088.093.744.254.83
Capital Expenditure -10.70-0.16-1.61-5.68-23.8123.62-8.65-2.86-3.25-3.69
UFCF 89.06100.47108.08135.06158.84177.97241.42217.25254.99289.79329.35
WACC
PV UFCF 208.96235.89257.85281.86
SUM PV UFCF 1,595.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.97
Free cash flow (t + 1) 342.53
Terminal Value -1,141,750.12
Present Value of Terminal Value -939,790.05

Intrinsic Value

Enterprise Value -938,194.54
Net Debt -270.12
Equity Value -937,924.41
Shares Outstanding 37.96
Equity Value Per Share -24,710.83