Discounted Cash Flow (DCF) Analysis Levered

ArrowMark Financial Corp. (BANX)

$17.37

+0.21 (+1.22%)

All numbers are in Millions, Currency in USD

Stock DCF: -3.10 | 17.37 | overvalue

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	11.84	14.45	9.85	14.42	7.86	7.68	7.51	7.35	7.18	7.02
Revenue (%)
Operating Cash Flow	-12.67	41.20	-13.20	-19.85	15.84	1.66	1.62	1.59	1.55	1.52
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	1.66	1.62	1.59	1.55	1.52

Weighted Average Cost Of Capital

Share price	$ 17.37
Beta	0.566
Diluted Shares Outstanding	7.15
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	4.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.267
Total Debt	55.60
Total Equity	124.28
Total Capital	179.88
Debt Weighting	30.91
Equity Weighting	69.09
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	11.84	14.45	9.85	14.42	7.86	7.68	7.51	7.35	7.18	7.02
Operating Cash Flow	-12.67	41.20	-13.20	-19.85	15.84	1.66	1.62	1.59	1.55	1.52
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	1.66	1.62	1.59	1.55	1.52
WACC
PV LFCF						1.56	1.44	1.32	1.21	1.12
SUM PV LFCF										6.65

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.32
Free cash flow (t + 1)	1.55
Terminal Value	35.84
Present Value of Terminal Value	26.38

Intrinsic Value

Enterprise Value	33.03
Net Debt	55.23
Equity Value	-22.20
Shares Outstanding	7.15
Equity Value Per Share	-3.10