Discounted Cash Flow (DCF) Analysis Levered

Business First Bancshares, Inc. (BFST)

$18.59

-0.12 (-0.64%)
All numbers are in Millions, Currency in USD
Stock DCF: 223.83 | 18.59 | 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 70.0190.91149.21186.56227.54307.74416.21562.90761.311,029.64
Revenue (%)
Operating Cash Flow 19.2824.4229.3456.4469.5883.02112.28151.86205.39277.78
Operating Cash Flow (%)
Capital Expenditure -0.92-3.96-2.97-3.97-7.78-8.13-10.99-14.87-20.11-27.20
Capital Expenditure (%)
Free Cash Flow 18.3620.4626.3752.4761.8074.89101.29136.99185.28250.58

Weighted Average Cost Of Capital

Share price $ 18.59
Beta 0.835
Diluted Shares Outstanding 18.24
Cost of Debt
Tax Rate 20.90
After-tax Cost of Debt 5.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.745
Total Debt 525.86
Total Equity 339.15
Total Capital 865
Debt Weighting 60.79
Equity Weighting 39.21
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 70.0190.91149.21186.56227.54307.74416.21562.90761.311,029.64
Operating Cash Flow 19.2824.4229.3456.4469.5883.02112.28151.86205.39277.78
Capital Expenditure -0.92-3.96-2.97-3.97-7.78-8.13-10.99-14.87-20.11-27.20
Free Cash Flow 18.3620.4626.3752.4761.8074.89101.29136.99185.28250.58
WACC
PV LFCF 61.5377.9498.73125.06158.42
SUM PV LFCF 594.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.77
Free cash flow (t + 1) 255.59
Terminal Value 5,358.34
Present Value of Terminal Value 3,861.75

Intrinsic Value

Enterprise Value 4,456.46
Net Debt 373.12
Equity Value 4,083.34
Shares Outstanding 18.24
Equity Value Per Share 223.83