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Discounted Cash Flow (DCF) Analysis Unlevered


White Mountains Insurance Group Ltd.

White Mountains Insurance Group Ltd. (WTM)

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 1,361.601,411.16440.00157.70373.79369.08373.84378.66383.55388.49393.51
Revenue (%)
EBITDA 398.95346.86313.28392.30644.11-109.99321.73325.88330.08334.34338.65
EBITDA (%)
EBIT 370.36311.58309.50371.89621.72-135.67302.17306.07310.02314.02318.07
EBIT (%)
Depreciation 28.5935.283.7820.4122.3925.6919.5519.8020.0620.3220.58
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 --384.21255.11273.20324.49383.26388.20393.21398.28403.42
Total Cash (%)
Account Receivables 556.35291.12269.7224.8157.7987.40110.69112.12113.57115.03116.52
Account Receivables (%)
Inventories -----------
Inventories (%)
Accounts Payable 92.4534.71-12.9932.18111.3942.0942.6443.1943.7444.31
Accounts Payable (%)
Capital Expenditure -11.71-4.52-----2.21-2.23-2.26-2.29-2.32
Capital Expenditure (%)

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

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
EBITDA 398.95346.86313.28392.30644.11-109.99321.73325.88330.08334.34338.65
EBIT 370.36311.58309.50371.89621.72-135.67302.17306.07310.02314.02318.07
Tax Rate 9.20%-4.98%4.12%-8.92%-1.26%2.75%0.15%0.15%0.15%0.15%0.15%
EBIAT 336.27327.09296.73405.06629.55-131.94301.71305.60309.54313.53317.58
Depreciation 28.5935.283.7820.4122.3925.6919.5519.8020.0620.3220.58
Accounts Receivable -265.2321.40244.91-32.98-29.61-23.30-1.43-1.45-1.47-1.48
Inventories -----------
Accounts Payable --57.74-34.71-19.1979.20-69.290.540.550.560.56
Capital Expenditure --7.19-4.52----0.030.030.030.03
UFCF 364.86562.66282.69670.38638.15-56.65228.67324.55328.73332.97337.27
WACC
PV UFCF 215.66288.68275.78263.45251.67
SUM PV UFCF 2,960.01

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 5,027.43