Discounted Cash Flow (DCF) Analysis Levered
Bank of Montreal (BMO.TO)
$109.84
-1.80 (-1.61%)
All numbers are in Millions, Currency in USD
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 | 22,870 | 25,332 | 25,025 | 26,909 | 26,259 | 27,221.80 | 28,219.90 | 29,254.60 | 30,327.24 | 31,439.20 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 17,912 | 29,303 | 50,836 | 44,049 | 4,957 | 31,561.56 | 32,718.78 | 33,918.43 | 35,162.07 | 36,451.31 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -886 | -1,128 | -1,032 | -983 | -1,448 | -1,176.97 | -1,220.12 | -1,264.86 | -1,311.24 | -1,359.32 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 17,026 | 28,175 | 49,804 | 43,066 | 3,509 | 30,384.59 | 31,498.66 | 32,653.57 | 33,850.83 | 35,091.99 |
Weighted Average Cost Of Capital
| Share price | $ 109.84 |
|---|---|
| Beta | 1.156 |
| Diluted Shares Outstanding | 665.71 |
| Cost of Debt | |
| Tax Rate | 24.32 |
| After-tax Cost of Debt | 3.75% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.258 |
| Total Debt | 222,641 |
| Total Equity | 73,121.26 |
| Total Capital | 295,762.26 |
| Debt Weighting | 75.28 |
| Equity Weighting | 24.72 |
| 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 | 22,870 | 25,332 | 25,025 | 26,909 | 26,259 | 27,221.80 | 28,219.90 | 29,254.60 | 30,327.24 | 31,439.20 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 17,912 | 29,303 | 50,836 | 44,049 | 4,957 | 31,561.56 | 32,718.78 | 33,918.43 | 35,162.07 | 36,451.31 |
| Capital Expenditure | -886 | -1,128 | -1,032 | -983 | -1,448 | -1,176.97 | -1,220.12 | -1,264.86 | -1,311.24 | -1,359.32 |
| Free Cash Flow | 17,026 | 28,175 | 49,804 | 43,066 | 3,509 | 30,384.59 | 31,498.66 | 32,653.57 | 33,850.83 | 35,091.99 |
| WACC | ||||||||||
| PV LFCF | 28,838.83 | 28,375.30 | 27,919.23 | 27,470.48 | 27,028.95 | |||||
| SUM PV LFCF | 139,632.80 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 5.36 |
| Free cash flow (t + 1) | 35,793.83 |
| Terminal Value | 1,065,292.60 |
| Present Value of Terminal Value | 820,521.75 |
Intrinsic Value
| Enterprise Value | 960,154.55 |
|---|---|
| Net Debt | 129,441 |
| Equity Value | 830,713.55 |
| Shares Outstanding | 665.71 |
| Equity Value Per Share | 1,247.87 |