Discounted Cash Flow (DCF) Analysis Levered

Cadence Bank (CADE)

$25.41

-0.21 (-0.82%)
All numbers are in Millions, Currency in USD
Stock DCF: 78.12 | 25.41 | 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 742.07857.26930.621,027.471,183.881,331.011,496.421,682.391,891.472,126.53
Revenue (%)
Operating Cash Flow 180.84223.37239.58226.541,172.72525.15590.42663.79746.29839.03
Operating Cash Flow (%)
Capital Expenditure -35.74-39.54-54.99-55.91-72.27-71.56-80.46-90.45-101.70-114.33
Capital Expenditure (%)
Free Cash Flow 145.11183.83184.59170.631,100.46453.59509.96573.34644.59724.70

Weighted Average Cost Of Capital

Share price $ 25.41
Beta 1.072
Diluted Shares Outstanding 120.67
Cost of Debt
Tax Rate 20.96
After-tax Cost of Debt 12.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.863
Total Debt 482.41
Total Equity 3,066.20
Total Capital 3,548.61
Debt Weighting 13.59
Equity Weighting 86.41
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 742.07857.26930.621,027.471,183.881,331.011,496.421,682.391,891.472,126.53
Operating Cash Flow 180.84223.37239.58226.541,172.72525.15590.42663.79746.29839.03
Capital Expenditure -35.74-39.54-54.99-55.91-72.27-71.56-80.46-90.45-101.70-114.33
Free Cash Flow 145.11183.83184.59170.631,100.46453.59509.96573.34644.59724.70
WACC
PV LFCF 414.77426.40438.37450.66463.30
SUM PV LFCF 2,193.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.36
Free cash flow (t + 1) 739.19
Terminal Value 10,043.37
Present Value of Terminal Value 6,420.77

Intrinsic Value

Enterprise Value 8,614.27
Net Debt -812.27
Equity Value 9,426.54
Shares Outstanding 120.67
Equity Value Per Share 78.12