| Intrinsic Valuation of: ACGL | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 13 | Market Cap | $33B | |||||
| 2021 | - | - (-) | P/E Ratio | 7 | Total Asset | $79B | |||||
| 2022 | $4B | - (-) | Net Income | $4B | Total Debt | $3B | |||||
| 2023 | $6B | 51.3% (9.4%) | EBITDA | - | Total Liab | $55B | |||||
| 2024 | $7B | 16.2% (-8.7%) | Opr Margin | - | Debt/Equity | 0.11 | |||||
| 2025 | $6B | -7.5% (-18.8%) | PreTax Margin | - | BV/Share | 63 | |||||
| 5Y Average FCF | $6B | 15.0% (-6.0%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.48% | Historical US Bond Yield: | 4.40% | ||||||||
| Discount Rate (WACC): | 7.00% | Current US Bond Yield: | 3.48% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (15.0%) | ||||||||||
| 2026 | $7B | MBG Intrinsic Value | $116 | ||||||||
| 2027 | $8B | ||||||||||
| 2028 | $8B | ||||||||||
| 2029 | $9B | ||||||||||
| 2030 | $10B | ||||||||||
| 2031 | $10B | ||||||||||
| Terminal Value | $222B | Net Worth/Share | $69 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $188B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $993M | $534 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $3B | WACC | 6.5% | 501 | 546 | 602 | 675 | 771 | |||
| Equity Value | $187B | 7.1% | 444 | 478 | 520 | 572 | 638 | ||||
| Shares Outstanding | 349,389,588 | 7.8% | 398 | 425 | 456 | 495 | 542 | ||||
| 8.4% | 360 | 381 | 406 | 436 | 471 | ||||||
| DCF Intrinsic Value | $534 | 9.0% | 329 | 346 | 366 | 389 | 417 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||