Discounted Cash Flow (DCF) Analysis Levered

Banner Corporation (BANR)

$66.77

-3.85 (-5.28%)
All numbers are in Millions, Currency in USD
Stock DCF: 137.52 | 66.77 | 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 451.71499.57533.87563.82572.76608.07645.55685.34727.59772.43
Revenue (%)
Operating Cash Flow 346.7030.77148.87125.39100.34183.10194.38206.36219.08232.59
Operating Cash Flow (%)
Capital Expenditure -12.24-23.09-24.70-12.80-20.38-21.63-22.97-24.38-25.89-27.48
Capital Expenditure (%)
Free Cash Flow 334.467.68124.17112.5879.96161.46171.42181.98193.20205.11

Weighted Average Cost Of Capital

Share price $ 66.77
Beta 1.006
Diluted Shares Outstanding 35.53
Cost of Debt
Tax Rate 18.47
After-tax Cost of Debt 5.86%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.335
Total Debt 328.13
Total Equity 2,372.26
Total Capital 2,700.40
Debt Weighting 12.15
Equity Weighting 87.85
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 451.71499.57533.87563.82572.76608.07645.55685.34727.59772.43
Operating Cash Flow 346.7030.77148.87125.39100.34183.10194.38206.36219.08232.59
Capital Expenditure -12.24-23.09-24.70-12.80-20.38-21.63-22.97-24.38-25.89-27.48
Free Cash Flow 334.467.68124.17112.5879.96161.46171.42181.98193.20205.11
WACC
PV LFCF 138.35135.96133.61131.31129.04
SUM PV LFCF 721.93

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.03
Free cash flow (t + 1) 209.21
Terminal Value 3,469.49
Present Value of Terminal Value 2,358

Intrinsic Value

Enterprise Value 3,079.94
Net Debt -1,806.16
Equity Value 4,886.10
Shares Outstanding 35.53
Equity Value Per Share 137.52