Discounted Cash Flow (DCF) Analysis Unlevered

MGIC Investment Corp

MGIC Investment Corp (MTG)

$8.56
0.06 (+0.71%)

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
2024
Projected
Revenue 953.00852.80909.19942.88944.93983.871,041.631,059.011,076.681,094.651,112.911,131.48
Revenue (%)
EBITDA -57.10233.96471.31519.38658.89849.37844.11552.90562.12571.50581.04590.74
EBITDA (%)
EBIT -125.80185.10418.76458.04594.46791.16795.32488.38496.53504.82513.24521.81
EBIT (%)
Depreciation 68.7048.8652.5661.3464.4358.2148.7864.5165.5966.6967.8068.93
Depreciation (%)

Balance Sheet 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
2024
Projected
Total Cash ------------
Total Cash (%)
Account Receivables ------------
Account Receivables (%)
Inventories ------------
Inventories (%)
Accounts Payable ------------
Accounts Payable (%)
Capital Expenditure --4.71-4.63-10.55-16.07-14.24-5.64-10.36-10.53-10.71-10.89-11.07
Capital Expenditure (%)

Weighted Average Cost Of Capital

Share price $ 8.56
Beta 1.801
Diluted Shares Outstanding 373.92
Cost of Debt
Tax Rate 20.54
After-tax Cost of Debt 3.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 16.795
Total Debt 832.74
Total Equity 3,200.79
Total Capital 4,033.53
Debt Weighting 20.65
Equity Weighting 79.35
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
2024
Projected
Revenue 953.00852.80909.19942.88944.93983.871,041.631,059.011,076.681,094.651,112.911,131.48
EBITDA -57.10233.96471.31519.38658.89849.37844.11552.90562.12571.50581.04590.74
EBIT -125.80185.10418.76458.04594.46791.16795.32488.38496.53504.82513.24521.81
Tax Rate -7.79%1.10%-140.32%33.45%54.65%20.62%20.54%-2.53%-2.53%-2.53%-2.53%-2.53%
EBIAT -135.60183.071,006.34304.80269.58628.03631.92500.76509.12517.61526.25535.03
Depreciation 68.7048.8652.5661.3464.4358.2148.7864.5165.5966.6967.8068.93
Accounts Receivable ------------
Inventories ------------
Accounts Payable ------------
Capital Expenditure --4.71-4.63-10.55-16.07-14.24-5.64-10.36-10.53-10.71-10.89-11.07
UFCF -66.90227.221,054.27355.59317.95672.01675.07554.92564.18573.59583.16592.89
WACC
PV UFCF 486.13432.97385.63343.47305.91
SUM PV UFCF 1,954.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 14.15
Free cash flow (t + 1) 616.61
Terminal Value 6,074.97
Present Value of Terminal Value 3,134.47

Intrinsic Value

Enterprise Value 5,088.59
Net Debt 670.89
Equity Value 4,417.70
Shares Outstanding 373.92
Equity Value Per Share 11.81