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	70.01	90.91	149.21	186.56	227.54	307.74	416.21	562.90	761.31	1,029.64
Revenue (%)
Operating Cash Flow	19.28	24.42	29.34	56.44	69.58	83.02	112.28	151.86	205.39	277.78
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	18.36	20.46	26.37	52.47	61.80	74.89	101.29	136.99	185.28	250.58

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	70.01	90.91	149.21	186.56	227.54	307.74	416.21	562.90	761.31	1,029.64
Operating Cash Flow	19.28	24.42	29.34	56.44	69.58	83.02	112.28	151.86	205.39	277.78
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	18.36	20.46	26.37	52.47	61.80	74.89	101.29	136.99	185.28	250.58
WACC
PV LFCF						61.53	77.94	98.73	125.06	158.42
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