Discounted Cash Flow (DCF) Analysis Levered

Bank of Marin Bancorp (BMRC)

$32.55

+0.77 (+2.42%)
All numbers are in Millions, Currency in USD
Stock DCF: 116.95 | 32.55 | 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 83.12101.68104.76105.21115.08125.20136.21148.19161.22175.40
Revenue (%)
Operating Cash Flow 26.9542.1140.9340.8445.2547.8452.0556.6261.6067.02
Operating Cash Flow (%)
Capital Expenditure -1.43-0.91-0.54-0.98-1.04-1.25-1.36-1.47-1.60-1.74
Capital Expenditure (%)
Free Cash Flow 25.5141.2040.3939.8644.2146.5950.6955.156065.27

Weighted Average Cost Of Capital

Share price $ 32.55
Beta 0.755
Diluted Shares Outstanding 13.62
Cost of Debt
Tax Rate 25.97
After-tax Cost of Debt 9.74%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.450
Total Debt 25.85
Total Equity 443.23
Total Capital 469.08
Debt Weighting 5.51
Equity Weighting 94.49
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 83.12101.68104.76105.21115.08125.20136.21148.19161.22175.40
Operating Cash Flow 26.9542.1140.9340.8445.2547.8452.0556.6261.6067.02
Capital Expenditure -1.43-0.91-0.54-0.98-1.04-1.25-1.36-1.47-1.60-1.74
Free Cash Flow 25.5141.2040.3939.8644.2146.5950.6955.156065.27
WACC
PV LFCF 43.7044.5845.4946.4147.35
SUM PV LFCF 227.53

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.63
Free cash flow (t + 1) 66.58
Terminal Value 1,437.97
Present Value of Terminal Value 1,043.16

Intrinsic Value

Enterprise Value 1,270.69
Net Debt -321.79
Equity Value 1,592.48
Shares Outstanding 13.62
Equity Value Per Share 116.95