DCF Tool

VRSK

Verisk Analytics Inc – Data Processing, Hosting, and Related Services
Verisk provides predictive analytics and decision-support solutions to customers in the insurance, energy and specialized markets, and financial services industries. More than 70 percent of the FORTUNE 100 relies on the company's advanced technologies to manage risks, make better decisions and improve operating efficiency. The company's analytic solutions address insurance underwriting and claims, fraud, regulatory compliance, natural resources, catastrophes, economic forecasting, geopolitical risks, as well as environmental, social, and governance (ESG) matters.
Analysis Results
Intrinsic Value $179.39
Latest Price $171.03
Relative Value 5% undervalued
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Cash Flow (Billions)
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 11.8%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 7.3%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of 11.8%, 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 (billion) Present value (billion)
2022 1.13 1.05
2023 1.26 1.1
2024 1.41 1.15
2025 1.58 1.19
2026 1.77 1.24
Terminal Value

Assuming a growth rate after the projection years of 2.0%, the terminal value of the company would be 34.2 billion. This corresponds to a present value of 22.4 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 5.73 billion. Adding in the terminal value gives a total present value of 28.2 billion.

There are presently 157.0 million outstanding shares, so the intrinsic value per share is 179.39.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 902,600,000
Current Cash 280,300,000
Current Liabilities 1,843,200,000
Current Debt 971,300,000
Non-Cash Working Capital (NCWC) -249,600,000
Change in NCWC 91,500,000
EBIT 1,000,500,000
Tax Provision 209,100,000
Depreciation and Amortization 383,600,000
Capital Expenditure -268,400,000
Unlevered Free Cash Flow 968,218,334
Current Assets 794,200,000
Current Cash 218,800,000
Current Liabilities 1,430,800,000
Current Debt 514,300,000
Non-Cash Working Capital (NCWC) -341,100,000
Change in NCWC 91,000,000
EBIT 1,038,100,000
Tax Provision 184,800,000
Depreciation and Amortization 358,100,000
Capital Expenditure -246,800,000
Unlevered Free Cash Flow 1,026,649,715
Current Assets 744,900,000
Current Cash 184,600,000
Current Liabilities 1,491,800,000
Current Debt 499,400,000
Non-Cash Working Capital (NCWC) -432,100,000
Change in NCWC -282,000,000
EBIT 696,900,000
Tax Provision 118,500,000
Depreciation and Amortization 323,700,000
Capital Expenditure -216,800,000
Unlevered Free Cash Flow 376,510,327
Current Assets 644,500,000
Current Cash 142,800,000
Current Liabilities 1,324,600,000
Current Debt 672,800,000
Non-Cash Working Capital (NCWC) -150,100,000
Change in NCWC 11,600,000
EBIT 834,100,000
Tax Provision 121,000,000
Depreciation and Amortization 296,100,000
Capital Expenditure -231,000,000
Unlevered Free Cash Flow 770,566,430
Current Assets 597,600,000
Current Cash 146,100,000
Current Liabilities 1,337,600,000
Current Debt 724,400,000
Non-Cash Working Capital (NCWC) -161,700,000
Change in NCWC -9,300,000
EBIT 801,200,000
Tax Provision 135,900,000
Depreciation and Amortization 237,400,000
Capital Expenditure -183,500,000
Unlevered Free Cash Flow 688,226,801
Current Assets 500,900,000
Current Cash 138,500,000
Current Liabilities 621,600,000
Current Debt 106,800,000
Non-Cash Working Capital (NCWC) -152,400,000
Change in NCWC -10,599,000
EBIT 767,600,000
Tax Provision 202,200,000
Depreciation and Amortization 224,600,000
Capital Expenditure -156,500,000
Unlevered Free Cash Flow 587,669,884
Current Assets 604,569,000
Current Cash 141,924,000
Current Liabilities 1,479,257,000
Current Debt 874,811,000
Non-Cash Working Capital (NCWC) -141,801,000
Change in NCWC -47,912,000
EBIT 736,562,000
Tax Provision 209,859,000
Depreciation and Amortization 215,484,000
Capital Expenditure -166,138,000
Unlevered Free Cash Flow 522,542,405
Current Assets 384,483,000
Current Cash 43,160,000
Current Liabilities 771,270,000
Current Debt 336,058,000
Non-Cash Working Capital (NCWC) -93,889,000
Change in NCWC 27,709,000
EBIT 660,446,000
Tax Provision 219,755,000
Depreciation and Amortization 143,483,000
Capital Expenditure -146,818,000
Unlevered Free Cash Flow 439,084,483
Current Assets 474,845,000
Current Cash 169,712,000
Current Liabilities 431,179,000
Current Debt 4,448,000
Non-Cash Working Capital (NCWC) -121,598,000
Change in NCWC -27,368,000
EBIT 614,267,000
Tax Provision 196,426,000
Depreciation and Amortization 134,578,000
Capital Expenditure -145,976,000
Unlevered Free Cash Flow 351,537,660
Current Assets 390,559,000
Current Cash 94,702,000
Current Liabilities 585,350,000
Current Debt 195,263,000
Non-Cash Working Capital (NCWC) -94,230,000
Change in NCWC -7,119,000
EBIT 591,588,000
Tax Provision 190,066,000
Depreciation and Amortization 104,199,000
Capital Expenditure -74,373,000
Unlevered Free Cash Flow 397,732,919

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