Discounted Cash Flow (DCF) Analysis Levered

Axos Financial, Inc. (AX)

$40.74

-0.39 (-0.95%)

All numbers are in Millions, Currency in USD

Stock DCF: 109.77 | 40.74 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	439.44	488.54	572.39	632.85	705.34	794.13	894.10	1,006.66	1,133.38	1,276.06
Revenue (%)
Operating Cash Flow	167.91	204.42	284.12	412.58	210.28	356.88	401.81	452.39	509.34	573.46
Operating Cash Flow (%)
Capital Expenditure	-11.82	-20.08	-12.33	-10.44	-21.50	-21.68	-24.41	-27.49	-30.95	-34.84
Capital Expenditure (%)
Free Cash Flow	156.10	184.34	271.79	402.14	188.78	335.20	377.39	424.90	478.39	538.62

Weighted Average Cost Of Capital

Share price	$ 40.74
Beta	1.451
Diluted Shares Outstanding	60.52
Cost of Debt
Tax Rate	29.19
After-tax Cost of Debt	6.61%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.551
Total Debt	562.74
Total Equity	2,465.57
Total Capital	3,028.31
Debt Weighting	18.58
Equity Weighting	81.42
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	439.44	488.54	572.39	632.85	705.34	794.13	894.10	1,006.66	1,133.38	1,276.06
Operating Cash Flow	167.91	204.42	284.12	412.58	210.28	356.88	401.81	452.39	509.34	573.46
Capital Expenditure	-11.82	-20.08	-12.33	-10.44	-21.50	-21.68	-24.41	-27.49	-30.95	-34.84
Free Cash Flow	156.10	184.34	271.79	402.14	188.78	335.20	377.39	424.90	478.39	538.62
WACC
PV LFCF						305.22	312.92	320.81	328.90	337.19
SUM PV LFCF										1,605.04

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.82
Free cash flow (t + 1)	549.39
Terminal Value	7,025.43
Present Value of Terminal Value	4,398.10

Intrinsic Value

Enterprise Value	6,003.14
Net Debt	-639.84
Equity Value	6,642.98
Shares Outstanding	60.52
Equity Value Per Share	109.77