Discounted Cash Flow (DCF) Analysis Levered

Banc of California, Inc. (BANC)

$11.93

+0.26 (+2.23%)

All numbers are in Millions, Currency in USD

Stock DCF: 30.72 | 11.93 | 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	309.99	260.28	243.11	272.71	331.71	340.99	350.52	360.31	370.38	380.73
Revenue (%)
Operating Cash Flow	123	80.25	74.86	105.74	136.12	123.52	126.97	130.52	134.16	137.91
Operating Cash Flow (%)
Capital Expenditure	-9	-10.48	-5.09	-2.81	-26.85	-12.38	-12.72	-13.08	-13.44	-13.82
Capital Expenditure (%)
Free Cash Flow	114	69.78	69.77	102.93	109.28	111.14	114.25	117.44	120.72	124.10

Weighted Average Cost Of Capital

Share price	$ 11.93
Beta	1.284
Diluted Shares Outstanding	53.30
Cost of Debt
Tax Rate	28.39
After-tax Cost of Debt	4.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.793
Total Debt	1,002.25
Total Equity	635.90
Total Capital	1,638.16
Debt Weighting	61.18
Equity Weighting	38.82
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	309.99	260.28	243.11	272.71	331.71	340.99	350.52	360.31	370.38	380.73
Operating Cash Flow	123	80.25	74.86	105.74	136.12	123.52	126.97	130.52	134.16	137.91
Capital Expenditure	-9	-10.48	-5.09	-2.81	-26.85	-12.38	-12.72	-13.08	-13.44	-13.82
Free Cash Flow	114	69.78	69.77	102.93	109.28	111.14	114.25	117.44	120.72	124.10
WACC
PV LFCF						104.12	100.27	96.57	93	89.56
SUM PV LFCF										483.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.74
Free cash flow (t + 1)	126.58
Terminal Value	2,670.41
Present Value of Terminal Value	1,927.27

Intrinsic Value

Enterprise Value	2,410.79
Net Debt	773.36
Equity Value	1,637.43
Shares Outstanding	53.30
Equity Value Per Share	30.72