Discounted Cash Flow (DCF) Analysis Levered

Banc of California, Inc. (BANC-PE)

$25

+0.01 (+-%)

All numbers are in Millions, Currency in USD

Stock DCF: 72.27 | 25 | 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	343.02	307.58	258.58	243.11	272.71	259.02	246.03	233.68	221.96	210.82
Revenue (%)
Operating Cash Flow	563.01	123	80.25	74.86	105.74	157.86	149.94	142.42	135.27	128.49
Operating Cash Flow (%)
Capital Expenditure	-15.32	-9	-10.48	-5.09	-2.81	-7.55	-7.17	-6.81	-6.47	-6.14
Capital Expenditure (%)
Free Cash Flow	547.69	114	69.78	69.77	102.93	150.32	142.77	135.61	128.80	122.34

Weighted Average Cost Of Capital

Share price	$ 25
Beta	1.515
Diluted Shares Outstanding	26.33
Cost of Debt
Tax Rate	24.54
After-tax Cost of Debt	3.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.638
Total Debt	816.12
Total Equity	658.19
Total Capital	1,474.31
Debt Weighting	55.36
Equity Weighting	44.64
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	343.02	307.58	258.58	243.11	272.71	259.02	246.03	233.68	221.96	210.82
Operating Cash Flow	563.01	123	80.25	74.86	105.74	157.86	149.94	142.42	135.27	128.49
Capital Expenditure	-15.32	-9	-10.48	-5.09	-2.81	-7.55	-7.17	-6.81	-6.47	-6.14
Free Cash Flow	547.69	114	69.78	69.77	102.93	150.32	142.77	135.61	128.80	122.34
WACC
PV LFCF						140.89	125.43	111.67	99.41	88.50
SUM PV LFCF										565.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.69
Free cash flow (t + 1)	124.79
Terminal Value	2,660.74
Present Value of Terminal Value	1,924.79

Intrinsic Value

Enterprise Value	2,490.69
Net Debt	588
Equity Value	1,902.69
Shares Outstanding	26.33
Equity Value Per Share	72.27