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 $86
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 $1,098 1.5% 2.0% 2.5% 3.0% 3.5%
(-) Total Debt $3B WACC 7.3% 954 1,030 1,123 1,236 1,379
Equity Value $410B 7.4% 945 1,020 1,110 1,221 1,360
Shares Outstanding 373,220,000 7.4% 936 1,009 1,098 1,206 1,342
7.9% 855 915 987 1,074 1,179
DCF Intrinsic Value $1,098 8.4% 786 836 896 966 1,050
Analyzed by QuantJuice (2025)