Discounted Cash Flow (DCF) Analysis Levered

Associated Banc-Corp (ASB)

$21.62

-0.23 (-1.05%)
All numbers are in Millions, Currency in USD
Stock DCF: 55.92 | 21.62 | 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 1,073.901,235.151,207.641,256.971,049.041,049.911,050.771,051.641,052.511,053.38
Revenue (%)
Operating Cash Flow 458.37496.57574.26550.02529.55471.78472.17472.56472.95473.34
Operating Cash Flow (%)
Capital Expenditure -47.37-65.85-67.46-54.88-52.28-51.82-51.86-51.91-51.95-51.99
Capital Expenditure (%)
Free Cash Flow 411430.71506.80495.14477.27419.96420.30420.65421421.35

Weighted Average Cost Of Capital

Share price $ 21.62
Beta 1.063
Diluted Shares Outstanding 153.64
Cost of Debt
Tax Rate 19.55
After-tax Cost of Debt 3.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.906
Total Debt 1,905.10
Total Equity 3,321.74
Total Capital 5,226.84
Debt Weighting 36.45
Equity Weighting 63.55
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 1,073.901,235.151,207.641,256.971,049.041,049.911,050.771,051.641,052.511,053.38
Operating Cash Flow 458.37496.57574.26550.02529.55471.78472.17472.56472.95473.34
Capital Expenditure -47.37-65.85-67.46-54.88-52.28-51.82-51.86-51.91-51.95-51.99
Free Cash Flow 411430.71506.80495.14477.27419.96420.30420.65421421.35
WACC
PV LFCF 395.66373.08351.79331.71312.78
SUM PV LFCF 1,765.03

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.14
Free cash flow (t + 1) 429.77
Terminal Value 10,380.99
Present Value of Terminal Value 7,706.25

Intrinsic Value

Enterprise Value 9,471.28
Net Debt 879.59
Equity Value 8,591.70
Shares Outstanding 153.64
Equity Value Per Share 55.92