Discounted Cash Flow (DCF) Analysis Levered

Cathay General Bancorp (CATY)

$44.36

+0.49 (+1.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 104.45 | 44.36 | 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 526.38597.27619.66594.93652.36689.67729.12770.82814.91861.52
Revenue (%)
Operating Cash Flow 248.87336.54434.98319.95334.32384.63406.63429.89454.48480.47
Operating Cash Flow (%)
Capital Expenditure -3.19-6.67-7.13-5.78-3.73-6.09-6.44-6.81-7.20-7.61
Capital Expenditure (%)
Free Cash Flow 245.69329.87427.85314.18330.59378.54400.19423.08447.28472.86

Weighted Average Cost Of Capital

Share price $ 44.36
Beta 1.167
Diluted Shares Outstanding 76.91
Cost of Debt
Tax Rate 21.88
After-tax Cost of Debt 27.83%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.356
Total Debt 192.97
Total Equity 3,411.94
Total Capital 3,604.92
Debt Weighting 5.35
Equity Weighting 94.65
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 526.38597.27619.66594.93652.36689.67729.12770.82814.91861.52
Operating Cash Flow 248.87336.54434.98319.95334.32384.63406.63429.89454.48480.47
Capital Expenditure -3.19-6.67-7.13-5.78-3.73-6.09-6.44-6.81-7.20-7.61
Free Cash Flow 245.69329.87427.85314.18330.59378.54400.19423.08447.28472.86
WACC
PV LFCF 316.28305.64295.36285.42275.82
SUM PV LFCF 1,617.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.40
Free cash flow (t + 1) 482.32
Terminal Value 6,517.82
Present Value of Terminal Value 4,159.26

Intrinsic Value

Enterprise Value 5,776.78
Net Debt -2,256.73
Equity Value 8,033.50
Shares Outstanding 76.91
Equity Value Per Share 104.45