Discounted Cash Flow (DCF) Analysis Levered

CB Financial Services, Inc. (CBFV)

$18.745

-0.77 (-3.92%)

All numbers are in Millions, Currency in USD

Stock DCF: 56.76 | 18.745 | 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	44.83	50.90	49.10	46.83	50.16	51.72	53.34	55	56.72	58.49
Revenue (%)
Operating Cash Flow	13.66	17.87	14.08	13.06	14.15	15.55	16.04	16.54	17.05	17.58
Operating Cash Flow (%)
Capital Expenditure	-5.33	-0.95	-0.32	-2.38	-0.51	-2.12	-2.19	-2.26	-2.33	-2.40
Capital Expenditure (%)
Free Cash Flow	8.33	16.92	13.76	10.67	13.64	13.43	13.85	14.28	14.73	15.19

Weighted Average Cost Of Capital

Share price	$ 18.745
Beta	0.542
Diluted Shares Outstanding	5.15
Cost of Debt
Tax Rate	20.12
After-tax Cost of Debt	26.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.249
Total Debt	14.64
Total Equity	96.52
Total Capital	111.16
Debt Weighting	13.17
Equity Weighting	86.83
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	44.83	50.90	49.10	46.83	50.16	51.72	53.34	55	56.72	58.49
Operating Cash Flow	13.66	17.87	14.08	13.06	14.15	15.55	16.04	16.54	17.05	17.58
Capital Expenditure	-5.33	-0.95	-0.32	-2.38	-0.51	-2.12	-2.19	-2.26	-2.33	-2.40
Free Cash Flow	8.33	16.92	13.76	10.67	13.64	13.43	13.85	14.28	14.73	15.19
WACC
PV LFCF						12.34	11.69	11.07	10.49	9.93
SUM PV LFCF										55.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.86
Free cash flow (t + 1)	15.49
Terminal Value	225.79
Present Value of Terminal Value	147.70

Intrinsic Value

Enterprise Value	203.21
Net Debt	-89.06
Equity Value	292.27
Shares Outstanding	5.15
Equity Value Per Share	56.76