Discounted Cash Flow (DCF) Analysis Levered

Business First Bancshares, Inc. (BFST)

$21.74

-0.44 (-1.98%)

All numbers are in Millions, Currency in USD

Stock DCF: 163.15 | 21.74 | 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	49.99	70.01	90.91	149.21	186.56	260.75	364.43	509.35	711.90	994.99
Revenue (%)
Operating Cash Flow	7.97	19.28	24.42	29.34	56.44	62.71	87.65	122.50	171.21	239.30
Operating Cash Flow (%)
Capital Expenditure	-0.50	-0.92	-3.96	-2.97	-4.04	-5.65	-7.90	-11.04	-15.43	-21.56
Capital Expenditure (%)
Free Cash Flow	7.46	18.36	20.46	26.37	52.40	57.06	79.75	111.46	155.79	217.74

Weighted Average Cost Of Capital

Share price	$ 21.74
Beta	0.834
Diluted Shares Outstanding	18.24
Cost of Debt
Tax Rate	19.24
After-tax Cost of Debt	7.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.819
Total Debt	168.47
Total Equity	396.61
Total Capital	565.08
Debt Weighting	29.81
Equity Weighting	70.19
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	49.99	70.01	90.91	149.21	186.56	260.75	364.43	509.35	711.90	994.99
Operating Cash Flow	7.97	19.28	24.42	29.34	56.44	62.71	87.65	122.50	171.21	239.30
Capital Expenditure	-0.50	-0.92	-3.96	-2.97	-4.04	-5.65	-7.90	-11.04	-15.43	-21.56
Free Cash Flow	7.46	18.36	20.46	26.37	52.40	57.06	79.75	111.46	155.79	217.74
WACC
PV LFCF						52.91	68.56	88.85	115.15	149.22
SUM PV LFCF										474.69

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.85
Free cash flow (t + 1)	222.09
Terminal Value	3,796.42
Present Value of Terminal Value	2,601.79

Intrinsic Value

Enterprise Value	3,076.48
Net Debt	100.09
Equity Value	2,976.39
Shares Outstanding	18.24
Equity Value Per Share	163.15