Discounted Cash Flow (DCF) Analysis Levered

Bank of Hawaii Corporation (BOH)

$85.07

+0.85 (+1.01%)

All numbers are in Millions, Currency in USD

Stock DCF: 83.80 | 85.07 | overvalue

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	638.60	650.03	675.33	676.47	668.64	676.49	684.43	692.46	700.58	708.80
Revenue (%)
Operating Cash Flow	175.15	317.92	234.24	146.42	377.15	255.81	258.81	261.84	264.92	268.03
Operating Cash Flow (%)
Capital Expenditure	-30.47	-35.30	-53.90	-33.29	-38.62	-39.07	-39.53	-40	-40.47	-40.94
Capital Expenditure (%)
Free Cash Flow	144.68	282.62	180.34	113.13	338.53	216.73	219.28	221.85	224.45	227.09

Weighted Average Cost Of Capital

Share price	$ 85.07
Beta	1.114
Diluted Shares Outstanding	39.89
Cost of Debt
Tax Rate	22.17
After-tax Cost of Debt	20.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.083
Total Debt	113.60
Total Equity	3,393.62
Total Capital	3,507.22
Debt Weighting	3.24
Equity Weighting	96.76
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	638.60	650.03	675.33	676.47	668.64	676.49	684.43	692.46	700.58	708.80
Operating Cash Flow	175.15	317.92	234.24	146.42	377.15	255.81	258.81	261.84	264.92	268.03
Capital Expenditure	-30.47	-35.30	-53.90	-33.29	-38.62	-39.07	-39.53	-40	-40.47	-40.94
Free Cash Flow	144.68	282.62	180.34	113.13	338.53	216.73	219.28	221.85	224.45	227.09
WACC
PV LFCF						169.82	158.40	147.74	137.81	128.54
SUM PV LFCF										873.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.47
Free cash flow (t + 1)	231.63
Terminal Value	3,580.02
Present Value of Terminal Value	2,384.17

Intrinsic Value

Enterprise Value	3,257.55
Net Debt	-85.30
Equity Value	3,342.84
Shares Outstanding	39.89
Equity Value Per Share	83.80