Discounted Cash Flow (DCF) Analysis Levered

Cass Information Systems, Inc. (CASS)

$40.27

+1.75 (+4.54%)

All numbers are in Millions, Currency in USD

Stock DCF: 87.57 | 40.27 | 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	143.36	151.96	139.92	146.60	175.95	186.01	196.65	207.90	219.78	232.35
Revenue (%)
Operating Cash Flow	48.34	42.13	47.78	34.55	51.61	55.24	58.40	61.74	65.27	69
Operating Cash Flow (%)
Capital Expenditure	-4.40	-2.72	-2	-4.37	-5.87	-4.69	-4.96	-5.24	-5.54	-5.86
Capital Expenditure (%)
Free Cash Flow	43.94	39.40	45.78	30.18	45.74	50.55	53.44	56.50	59.73	63.14

Weighted Average Cost Of Capital

Share price	$ 40.27
Beta	0.631
Diluted Shares Outstanding	14.30
Cost of Debt
Tax Rate	18.64
After-tax Cost of Debt	4.07%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.670
Total Debt	-
Total Equity	575.94
Total Capital	575.94
Debt Weighting	0.00
Equity Weighting	100.00
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	143.36	151.96	139.92	146.60	175.95	186.01	196.65	207.90	219.78	232.35
Operating Cash Flow	48.34	42.13	47.78	34.55	51.61	55.24	58.40	61.74	65.27	69
Capital Expenditure	-4.40	-2.72	-2	-4.37	-5.87	-4.69	-4.96	-5.24	-5.54	-5.86
Free Cash Flow	43.94	39.40	45.78	30.18	45.74	50.55	53.44	56.50	59.73	63.14
WACC
PV LFCF						47.39	46.97	46.55	46.13	45.72
SUM PV LFCF										232.76

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.67
Free cash flow (t + 1)	64.41
Terminal Value	1,379.14
Present Value of Terminal Value	998.61

Intrinsic Value

Enterprise Value	1,231.37
Net Debt	-21
Equity Value	1,252.36
Shares Outstanding	14.30
Equity Value Per Share	87.57