Discounted Cash Flow (DCF) Analysis Levered

Bar Harbor Bankshares (BHB)

$24.05

-1.22 (-4.83%)

All numbers are in Millions, Currency in USD

Stock DCF: 107.35 | 24.05 | 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	118.82	118.88	142.14	137.83	149	158.20	167.96	178.33	189.34	201.03
Revenue (%)
Operating Cash Flow	37.72	36.40	38.17	60.48	57.60	54.35	57.70	61.26	65.04	69.06
Operating Cash Flow (%)
Capital Expenditure	-4.79	-9.19	-6.78	-1.72	-2.52	-6.16	-6.54	-6.94	-7.37	-7.82
Capital Expenditure (%)
Free Cash Flow	32.93	27.22	31.40	58.76	55.08	48.19	51.16	54.32	57.67	61.23

Weighted Average Cost Of Capital

Share price	$ 24.05
Beta	0.793
Diluted Shares Outstanding	15.11
Cost of Debt
Tax Rate	20.58
After-tax Cost of Debt	2.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.436
Total Debt	394.25
Total Equity	363.44
Total Capital	757.69
Debt Weighting	52.03
Equity Weighting	47.97
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	118.82	118.88	142.14	137.83	149	158.20	167.96	178.33	189.34	201.03
Operating Cash Flow	37.72	36.40	38.17	60.48	57.60	54.35	57.70	61.26	65.04	69.06
Capital Expenditure	-4.79	-9.19	-6.78	-1.72	-2.52	-6.16	-6.54	-6.94	-7.37	-7.82
Free Cash Flow	32.93	27.22	31.40	58.76	55.08	48.19	51.16	54.32	57.67	61.23
WACC
PV LFCF						45.93	46.48	47.04	47.61	48.18
SUM PV LFCF										235.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.91
Free cash flow (t + 1)	62.46
Terminal Value	2,146.30
Present Value of Terminal Value	1,688.91

Intrinsic Value

Enterprise Value	1,924.17
Net Debt	301.95
Equity Value	1,622.21
Shares Outstanding	15.11
Equity Value Per Share	107.35