Discounted Cash Flow (DCF) Analysis Levered

Carter Bankshares, Inc. (CARE)

$16.35

-0.26 (-1.57%)
All numbers are in Millions, Currency in USD
Stock DCF: 21.67 | 16.35 | 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 112.25119.90121.73127.95133.66139.65145.90152.44159.27166.40
Revenue (%)
Operating Cash Flow 43.8449.1438.297.7039.2741.0342.8644.7846.7948.88
Operating Cash Flow (%)
Capital Expenditure -3.11-14.61-8.45-10.12-9.96-10.41-10.88-11.36-11.87-12.40
Capital Expenditure (%)
Free Cash Flow 40.7234.5329.83-2.4229.3030.6231.9933.4234.9236.48

Weighted Average Cost Of Capital

Share price $ 16.35
Beta 1.027
Diluted Shares Outstanding 26.34
Cost of Debt
Tax Rate 11.51
After-tax Cost of Debt 287.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.543
Total Debt 7
Total Equity 430.70
Total Capital 437.70
Debt Weighting 1.60
Equity Weighting 98.40
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 112.25119.90121.73127.95133.66139.65145.90152.44159.27166.40
Operating Cash Flow 43.8449.1438.297.7039.2741.0342.8644.7846.7948.88
Capital Expenditure -3.11-14.61-8.45-10.12-9.96-10.41-10.88-11.36-11.87-12.40
Free Cash Flow 40.7234.5329.83-2.4229.3030.6231.9933.4234.9236.48
WACC
PV LFCF 18.7817.3616.0514.8413.72
SUM PV LFCF 116.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 13.00
Free cash flow (t + 1) 37.21
Terminal Value 338.27
Present Value of Terminal Value 183.60

Intrinsic Value

Enterprise Value 300.12
Net Debt -270.80
Equity Value 570.92
Shares Outstanding 26.34
Equity Value Per Share 21.67