| Intrinsic Valuation of: ACGL | |||||||||||
| Free Cash Flow Average and Growth over past 5Y | Key Statistics | ||||||||||
| Year | FCF | FCF (FCF/Revenue) | |||||||||
| 2020 | - | - | EPS (FY) | 10 | Market Cap | $34B | |||||
| 2021 | - | - (-) | P/E Ratio | 9 | Total Asset | $71B | |||||
| 2022 | $3B | - (-) | Net Income | $4B | Total Debt | $3B | |||||
| 2023 | $4B | 11.3% (2.8%) | EBITDA | - | Total Liab | $50B | |||||
| 2024 | $6B | 51.3% (9.9%) | Opr Margin | - | Debt/Equity | 0.13 | |||||
| 2025 | $7B | 16.2% (-8.7%) | PreTax Margin | - | BV/Share | 50 | |||||
| 5Y Average FCF | $5B | 26.3% (1.3%) | |||||||||
| Overall Market Assumptions: | |||||||||||
| Assumptions: | P/E for No-Growth Company: | 7.0 | |||||||||
| Perpetual Growth Rate (g): | 2.5% | Historical US Bond Yield: | 4.4% | ||||||||
| Discount Rate (WACC): | 7.4% | Current US Bond Yield: | 3.5% | ||||||||
| Forcasting Future Free Cash Flow for next 6Y | Modified Benjamin Graham's Intrinsic Value | ||||||||||
| Year | FCF Projection (25.0%) | ||||||||||
| 2026 | $8B | MBG Intrinsic Value | $87 | ||||||||
| 2027 | $10B | ||||||||||
| 2028 | $13B | ||||||||||
| 2029 | $16B | ||||||||||
| 2030 | $20B | ||||||||||
| 2031 | $25B | ||||||||||
| Terminal Value | $525B | Net Worth/Share | $56 | ||||||||
| DCF Valuation | DCF Valuation "What If" Scenario Table | ||||||||||
| Enterprise Value | $411B | Growth Rate | |||||||||
| (+) Cash & Cash Equivalents | $979M | $1,093 | 1.5% | 2.0% | 2.5% | 3.0% | 3.5% | ||||
| (-) Total Debt | $3B | WACC | 7.3% | 950 | 1,026 | 1,118 | 1,231 | 1,374 | |||
| Equity Value | $410B | 7.4% | 941 | 1,016 | 1,105 | 1,216 | 1,355 | ||||
| Shares Outstanding | 374,755,008 | 7.4% | 932 | 1,005 | 1,093 | 1,201 | 1,336 | ||||
| 7.9% | 851 | 912 | 983 | 1,069 | 1,174 | ||||||
| DCF Intrinsic Value | $1,093 | 8.4% | 782 | 833 | 892 | 962 | 1,046 | ||||
| Analyzed by QuantJuice (2025) | |||||||||||