Discounted Cash Flow (DCF) Analysis Levered

Bank of the James Financial Group, ... (BOTJ)

$10.4

-0.10 (-0.95%)

All numbers are in Millions, Currency in USD

Stock DCF: 40.07 | 10.4 | 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	27.88	31.09	35.01	37.19	42.02	46.58	51.62	57.22	63.41	70.28
Revenue (%)
Operating Cash Flow	8.57	5.59	5.20	15.78	9.31	11.94	13.24	14.67	16.26	18.02
Operating Cash Flow (%)
Capital Expenditure	-2.30	-4.40	-1.75	-2.91	-1.19	-3.55	-3.93	-4.36	-4.83	-5.35
Capital Expenditure (%)
Free Cash Flow	6.27	1.19	3.45	12.88	8.12	8.40	9.31	10.31	11.43	12.67

Weighted Average Cost Of Capital

Share price	$ 10.4
Beta	0.740
Diluted Shares Outstanding	4.75
Cost of Debt
Tax Rate	19.36
After-tax Cost of Debt	8.46%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.117
Total Debt	20.49
Total Equity	49.38
Total Capital	69.87
Debt Weighting	29.33
Equity Weighting	70.67
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	27.88	31.09	35.01	37.19	42.02	46.58	51.62	57.22	63.41	70.28
Operating Cash Flow	8.57	5.59	5.20	15.78	9.31	11.94	13.24	14.67	16.26	18.02
Capital Expenditure	-2.30	-4.40	-1.75	-2.91	-1.19	-3.55	-3.93	-4.36	-4.83	-5.35
Free Cash Flow	6.27	1.19	3.45	12.88	8.12	8.40	9.31	10.31	11.43	12.67
WACC
PV LFCF						7.76	7.95	8.14	8.33	8.54
SUM PV LFCF										40.71

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.22
Free cash flow (t + 1)	12.92
Terminal Value	207.78
Present Value of Terminal Value	139.98

Intrinsic Value

Enterprise Value	180.69
Net Debt	-9.53
Equity Value	190.22
Shares Outstanding	4.75
Equity Value Per Share	40.07