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Alleghany Corp. – Reinsurance Carriers
Alleghany Corporation creates value through owning and supporting its operating subsidiaries and managing investments, anchored by a core position in property and casualty reinsurance and insurance. Alleghany's property and casualty subsidiaries include: Transatlantic Holdings, Inc., a leading global reinsurer; RSUI Group, Inc., which underwrites wholesale specialty insurance coverages including property, casualty, professional liability and directors' and officers' liability; and CapSpecialty, Inc., an underwriter of commercial property, casualty and surety insurance coverages. Alleghany's subsidiary Alleghany Capital Corporation owns and manages a diverse portfolio of non-financial businesses.
Analysis Results
Intrinsic Value $9.64
Latest Price $847.79
Relative Value 8690% overvalued
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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 -38.7%.

Weighted Average Cost of Capital (WACC)

The calculated WACC is 4.1%. This value is used as the default discount rate.

Value of Future Flows

Assuming a growth rate of -38.7%, 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 0.0237 0.0227
2023 0.0145 0.0134
2024 0.00888 0.00787
2025 0.00544 0.00463
2026 0.00333 0.00272
Terminal Value

Assuming the company was sold after the projection period at an exit multiple of 30, the terminal value of the company would be 0.1 billion. This corresponds to a present value of 0.0785 billion.

Intrinsic Value Per Share

The total present value of the projected cash flows is 0.0513 billion. Adding in the terminal value gives a total present value of 0.13 billion.

There are presently 13.5 million outstanding shares, so the intrinsic value per share is 9.64.

Financial Statements

The following data was to determine the past cash flows.

Current Assets 27,054,940,000
Current Cash 0
Current Liabilities 20,741,546,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,313,394,000
Change in NCWC 303,712,000
EBIT 1,412,703,000
Tax Provision 281,925,000
Depreciation and Amortization 178,031,000
Capital Expenditure -59,651,000
Unlevered Free Cash Flow 1,552,870,000
Current Assets 24,308,698,000
Current Cash 0
Current Liabilities 18,299,016,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,009,682,000
Change in NCWC -605,925,000
EBIT 268,076,000
Tax Provision 30,734,000
Depreciation and Amortization 160,002,000
Capital Expenditure -37,519,000
Unlevered Free Cash Flow -267,638,583
Current Assets 23,049,648,000
Current Cash 0
Current Liabilities 16,434,041,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,615,607,000
Change in NCWC 1,215,182,000
EBIT 413,941,000
Tax Provision 233,435,000
Depreciation and Amortization 119,513,000
Capital Expenditure -47,572,000
Unlevered Free Cash Flow 1,615,067,896
Current Assets 21,755,503,000
Current Cash 0
Current Liabilities 16,355,078,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,400,425,000
Change in NCWC -1,414,823,000
EBIT 268,586,000
Tax Provision -15,062,000
Depreciation and Amortization 127,374,000
Capital Expenditure -23,286,000
Unlevered Free Cash Flow -1,042,149,000
Current Assets 22,510,065,000
Current Cash 0
Current Liabilities 15,694,817,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,815,248,000
Change in NCWC 583,086,000
EBIT 36,690,000
Tax Provision -63,802,000
Depreciation and Amortization 135,029,000
Capital Expenditure 0
Unlevered Free Cash Flow 754,805,000
Current Assets 21,062,007,000
Current Cash 0
Current Liabilities 14,829,845,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,232,162,000
Change in NCWC -60,465,000
EBIT 647,805,000
Tax Provision 187,141,000
Depreciation and Amortization 160,469,000
Capital Expenditure -24,005,000
Unlevered Free Cash Flow 536,663,000
Current Assets 20,627,567,000
Current Cash 0
Current Liabilities 14,334,940,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,292,627,000
Change in NCWC -327,429,000
EBIT 757,368,000
Tax Provision 195,173,000
Depreciation and Amortization 163,062,000
Capital Expenditure -27,258,000
Unlevered Free Cash Flow 370,570,000
Current Assets 21,897,681,000
Current Cash 0
Current Liabilities 15,277,625,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,620,056,000
Change in NCWC 361,099,000
EBIT 931,909,000
Tax Provision 251,777,000
Depreciation and Amortization 178,949,000
Capital Expenditure -43,681,000
Unlevered Free Cash Flow 1,176,499,000
Current Assets 21,862,017,000
Current Cash 0
Current Liabilities 15,603,060,000
Current Debt 0
Non-Cash Working Capital (NCWC) 6,258,957,000
Change in NCWC 772,168,000
EBIT 855,236,000
Tax Provision 225,882,000
Depreciation and Amortization 246,598,000
Capital Expenditure -17,427,000
Unlevered Free Cash Flow 1,630,693,000
Current Assets 21,311,034,000
Current Cash 0
Current Liabilities 15,824,245,000
Current Debt 0
Non-Cash Working Capital (NCWC) 5,486,789,000
Change in NCWC 2,707,252,000
EBIT 224,336,000
Tax Provision 17,032,000
Depreciation and Amortization 464,857,000
Capital Expenditure -8,123,000
Unlevered Free Cash Flow 3,383,009,865

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