Discounted Cash Flow (DCF) Analysis Levered

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

$9.25

-0.24 (-2.53%)

All numbers are in Millions, Currency in USD

Stock DCF: 42.60 | 9.25 | 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	-3.70	-4.10	-4.55	-5.04	-5.58	-6.19
Capital Expenditure (%)
Free Cash Flow	6.27	1.19	3.45	12.88	5.61	7.84	8.69	9.63	10.67	11.83

Weighted Average Cost Of Capital

Share price	$ 9.25
Beta	0.715
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	7.010
Total Debt	20.49
Total Equity	43.92
Total Capital	64.41
Debt Weighting	31.82
Equity Weighting	68.18
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	-3.70	-4.10	-4.55	-5.04	-5.58	-6.19
Free Cash Flow	6.27	1.19	3.45	12.88	5.61	7.84	8.69	9.63	10.67	11.83
WACC
PV LFCF						7.30	7.52	7.76	8	8.25
SUM PV LFCF										38.83

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.47
Free cash flow (t + 1)	12.07
Terminal Value	220.61
Present Value of Terminal Value	153.88

Intrinsic Value

Enterprise Value	192.72
Net Debt	-9.53
Equity Value	202.25
Shares Outstanding	4.75
Equity Value Per Share	42.60