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	1,073.90	1,235.15	1,207.64	1,256.97	1,049.04	1,049.91	1,050.77	1,051.64	1,052.51	1,053.38
Revenue (%)
Operating Cash Flow	458.37	496.57	574.26	550.02	529.55	471.78	472.17	472.56	472.95	473.34
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	411	430.71	506.80	495.14	477.27	419.96	420.30	420.65	421	421.35

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	1,073.90	1,235.15	1,207.64	1,256.97	1,049.04	1,049.91	1,050.77	1,051.64	1,052.51	1,053.38
Operating Cash Flow	458.37	496.57	574.26	550.02	529.55	471.78	472.17	472.56	472.95	473.34
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	411	430.71	506.80	495.14	477.27	419.96	420.30	420.65	421	421.35
WACC
PV LFCF						395.66	373.08	351.79	331.71	312.78
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