Discounted Cash Flow (DCF) Analysis Levered

Allegiance Bancshares, Inc. (ABTX)

$46.13

+0.70 (+1.54%)

All numbers are in Millions, Currency in USD

Stock DCF: 170.68 | 46.13 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	109.53	136.29	192.96	210.84	237.13	289.14	352.57	429.91	524.22	639.22
Revenue (%)
Operating Cash Flow	33.43	46.06	66.87	61.06	107.38	100.17	122.14	148.94	181.61	221.45
Operating Cash Flow (%)
Capital Expenditure	-2.13	-3.42	-13.39	-7.18	-2.93	-9.27	-11.31	-13.79	-16.81	-20.50
Capital Expenditure (%)
Free Cash Flow	31.30	42.64	53.48	53.88	104.45	90.90	110.84	135.15	164.80	200.95

Weighted Average Cost Of Capital

Share price	$ 46.13
Beta	0.958
Diluted Shares Outstanding	20.55
Cost of Debt
Tax Rate	18.36
After-tax Cost of Debt	10.11%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.371
Total Debt	198.80
Total Equity	947.79
Total Capital	1,146.59
Debt Weighting	17.34
Equity Weighting	82.66
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	109.53	136.29	192.96	210.84	237.13	289.14	352.57	429.91	524.22	639.22
Operating Cash Flow	33.43	46.06	66.87	61.06	107.38	100.17	122.14	148.94	181.61	221.45
Capital Expenditure	-2.13	-3.42	-13.39	-7.18	-2.93	-9.27	-11.31	-13.79	-16.81	-20.50
Free Cash Flow	31.30	42.64	53.48	53.88	104.45	90.90	110.84	135.15	164.80	200.95
WACC
PV LFCF						84.28	95.29	107.73	121.81	137.72
SUM PV LFCF										546.82

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.85
Free cash flow (t + 1)	204.97
Terminal Value	3,503.70
Present Value of Terminal Value	2,401.19

Intrinsic Value

Enterprise Value	2,948.01
Net Debt	-558.71
Equity Value	3,506.71
Shares Outstanding	20.55
Equity Value Per Share	170.68