Discounted Cash Flow (DCF) Analysis Levered

Commerce Bancshares, Inc. (CBSH)

$67.01

-0.79 (-1.17%)
All numbers are in Millions, Currency in USD
Stock DCF: 117.52 | 67.01 | 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 1,245.331,324.681,349.621,346.751,425.881,475.491,526.821,579.941,634.911,691.79
Revenue (%)
Operating Cash Flow 433.23552.66512.79623.99597.72598.33619.15640.69662.98686.04
Operating Cash Flow (%)
Capital Expenditure -30.82-33.29-42.58-33.13-56.72-43.03-44.53-46.07-47.68-49.34
Capital Expenditure (%)
Free Cash Flow 402.40519.37470.22590.86541.01555.30574.62594.61615.30636.71

Weighted Average Cost Of Capital

Share price $ 67.01
Beta 0.779
Diluted Shares Outstanding 128.35
Cost of Debt
Tax Rate 22.66
After-tax Cost of Debt 79.22%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.300
Total Debt 12.56
Total Equity 8,600.90
Total Capital 8,613.46
Debt Weighting 0.15
Equity Weighting 99.85
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 1,245.331,324.681,349.621,346.751,425.881,475.491,526.821,579.941,634.911,691.79
Operating Cash Flow 433.23552.66512.79623.99597.72598.33619.15640.69662.98686.04
Capital Expenditure -30.82-33.29-42.58-33.13-56.72-43.03-44.53-46.07-47.68-49.34
Free Cash Flow 402.40519.37470.22590.86541.01555.30574.62594.61615.30636.71
WACC
PV LFCF 517.04498.16479.98462.46445.57
SUM PV LFCF 2,403.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.40
Free cash flow (t + 1) 649.44
Terminal Value 12,026.72
Present Value of Terminal Value 8,416.39

Intrinsic Value

Enterprise Value 10,819.60
Net Debt -4,264.20
Equity Value 15,083.79
Shares Outstanding 128.35
Equity Value Per Share 117.52