DCF Tool

MKTX

MarketAxess Holdings Inc. – Securities Brokerage
MarketAxess operates a leading, institutional electronic trading platform delivering expanded liquidity opportunities, improved execution quality and significant cost savings across global fixed-income markets. A global network of over 1,800 firms, including the world's leading asset managers and institutional broker-dealers, leverages MarketAxess' patented trading technology to efficiently trade bonds. MarketAxess' award-winning Open Trading™ marketplace is regarded as the preferred all-to-all trading solution in the global credit markets, creating a unique liquidity pool for a broad range of credit market participants. Drawing on its deep data and analytical resources, MarketAxess provides automated trading solutions, market data products and a range of pre- and post-trade services.
Analysis Results
Intrinsic Value $260.36
Latest Price $279.31
Relative Value 7% overvalued
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Cash Flow (Millions)
Analysis Parameters
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Analysis Details
Growth Rate Projection

An exponential growth model was fit to the past cash flow data, giving more weight to more recent years. This model determined a growth rate estimate of 15.0%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.8%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 15.0%, the cash flows for the next 5 years are projected.

The present value of each year's flow is adjusted to present value using the discount rate.

Year Future flow (million) Present value (million)
2022 388 360
2023 447 385
2024 514 411
2025 591 438
2026 680 468
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 12000 million. This corresponds to a present value of 7690 million.

Intrinsic Value Per Share

The total present value of the projected cash flows is 2060 million. Adding in the terminal value gives a total present value of 9750 million.

There are presently 37.5 million outstanding shares, so the intrinsic value per share is 260.36.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 1,092,265,000
Current Cash 0
Current Liabilities 400,718,000
Current Debt 0
Non-Cash Working Capital (NCWC) 691,547,000
Change in NCWC 46,744,000
EBIT 336,794,000
Tax Provision 76,035,000
Depreciation and Amortization 60,246,000
Capital Expenditure -50,616,000
Unlevered Free Cash Flow 316,479,266
Current Assets 927,559,000
Current Cash 0
Current Liabilities 282,756,000
Current Debt 0
Non-Cash Working Capital (NCWC) 644,803,000
Change in NCWC 138,263,000
EBIT 376,032,000
Tax Provision 74,982,000
Depreciation and Amortization 42,838,000
Capital Expenditure -45,628,000
Unlevered Free Cash Flow 436,187,907
Current Assets 593,388,000
Current Cash 0
Current Liabilities 86,848,000
Current Debt 0
Non-Cash Working Capital (NCWC) 506,540,000
Change in NCWC 27,771,000
EBIT 258,945,000
Tax Provision 52,522,000
Depreciation and Amortization 32,652,000
Capital Expenditure -34,700,000
Unlevered Free Cash Flow 231,835,671
Current Assets 566,430,000
Current Cash 0
Current Liabilities 87,661,000
Current Debt 0
Non-Cash Working Capital (NCWC) 478,769,000
Change in NCWC 67,345,000
EBIT 218,696,000
Tax Provision 45,234,000
Depreciation and Amortization 23,080,000
Capital Expenditure -47,593,000
Unlevered Free Cash Flow 216,167,477
Current Assets 477,888,000
Current Cash 0
Current Liabilities 66,464,000
Current Debt 0
Non-Cash Working Capital (NCWC) 411,424,000
Change in NCWC 46,520,000
EBIT 201,768,000
Tax Provision 53,679,000
Depreciation and Amortization 19,274,000
Capital Expenditure -25,557,000
Unlevered Free Cash Flow 188,326,000
Current Assets 424,933,000
Current Cash 0
Current Liabilities 60,029,000
Current Debt 0
Non-Cash Working Capital (NCWC) 364,904,000
Change in NCWC 78,459,000
EBIT 191,602,000
Tax Provision 65,430,000
Depreciation and Amortization 17,838,000
Capital Expenditure -18,503,000
Unlevered Free Cash Flow 203,966,000
Current Assets 334,773,000
Current Cash 0
Current Liabilities 48,328,000
Current Debt 0
Non-Cash Working Capital (NCWC) 286,445,000
Change in NCWC 57,813,000
EBIT 147,900,000
Tax Provision 51,863,000
Depreciation and Amortization 18,542,000
Capital Expenditure -15,384,000
Unlevered Free Cash Flow 157,008,000
Current Assets 274,308,000
Current Cash 0
Current Liabilities 45,676,000
Current Debt 0
Non-Cash Working Capital (NCWC) 228,632,000
Change in NCWC 24,617,000
EBIT 118,536,000
Tax Provision 43,730,000
Depreciation and Amortization 17,379,000
Capital Expenditure -4,627,000
Unlevered Free Cash Flow 112,175,000
Current Assets 245,231,000
Current Cash 0
Current Liabilities 41,216,000
Current Debt 0
Non-Cash Working Capital (NCWC) 204,015,000
Change in NCWC 21,534,000
EBIT 107,280,000
Tax Provision 38,717,000
Depreciation and Amortization 13,051,000
Capital Expenditure -23,282,000
Unlevered Free Cash Flow 79,866,000
Current Assets 219,256,000
Current Cash 0
Current Liabilities 36,775,000
Current Debt 0
Non-Cash Working Capital (NCWC) 182,481,000
Change in NCWC -73,513,000
EBIT 86,686,000
Tax Provision 26,617,000
Depreciation and Amortization 8,233,000
Capital Expenditure -10,360,000
Unlevered Free Cash Flow -15,571,000

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