Discounted Cash Flow (DCF) Analysis Levered

BankFinancial Corporation (BFIN)

$7.79

+0.24 (+3.18%)

All numbers are in Millions, Currency in USD

Stock DCF: 17.78 | 7.79 | 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	66.85	58.36	51.25	49.46	56.79	54.87	53.01	51.21	49.47	47.80
Revenue (%)
Operating Cash Flow	20.68	21.37	13.52	7.77	9.29	13.83	13.36	12.91	12.47	12.04
Operating Cash Flow (%)
Capital Expenditure	-1.61	-0.80	-2.01	-2.33	-1.94	-1.74	-1.68	-1.62	-1.57	-1.51
Capital Expenditure (%)
Free Cash Flow	19.08	20.58	11.51	5.43	7.35	12.09	11.68	11.28	10.90	10.53

Weighted Average Cost Of Capital

Share price	$ 7.79
Beta	0.381
Diluted Shares Outstanding	13.07
Cost of Debt
Tax Rate	24.15
After-tax Cost of Debt	17.31%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.491
Total Debt	19.63
Total Equity	101.83
Total Capital	121.46
Debt Weighting	16.16
Equity Weighting	83.84
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	66.85	58.36	51.25	49.46	56.79	54.87	53.01	51.21	49.47	47.80
Operating Cash Flow	20.68	21.37	13.52	7.77	9.29	13.83	13.36	12.91	12.47	12.04
Capital Expenditure	-1.61	-0.80	-2.01	-2.33	-1.94	-1.74	-1.68	-1.62	-1.57	-1.51
Free Cash Flow	19.08	20.58	11.51	5.43	7.35	12.09	11.68	11.28	10.90	10.53
WACC
PV LFCF						11.26	10.13	9.11	8.19	7.37
SUM PV LFCF										46.05

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.40
Free cash flow (t + 1)	10.74
Terminal Value	198.92
Present Value of Terminal Value	139.21

Intrinsic Value

Enterprise Value	185.26
Net Debt	-47.14
Equity Value	232.40
Shares Outstanding	13.07
Equity Value Per Share	17.78