Discounted Cash Flow (DCF) Analysis Levered

Commerce Bancshares, Inc. (CBSH)

$52.16

+0.39 (+0.75%)
All numbers are in Millions, Currency in USD
Stock DCF: 93.64 | 52.16 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,349.621,346.751,425.881,509.231,969.322,176.072,404.522,656.962,935.893,244.12
Revenue (%)
Operating Cash Flow 512.79623.99597.72559.38488.77818.78904.73999.721,104.671,220.64
Operating Cash Flow (%)
Capital Expenditure -42.58-33.13-56.72-65.19-68.49-75.68-83.63-92.41-102.11-112.83
Capital Expenditure (%)
Free Cash Flow 470.22590.86541.01494.19420.28743.09821.10907.311,002.561,107.81

Weighted Average Cost Of Capital

Share price $ 52.16
Beta 0.803
Diluted Shares Outstanding 130.07
Cost of Debt
Tax Rate 23.02
After-tax Cost of Debt 10.14%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.089
Total Debt 2,910.22
Total Equity 6,784.54
Total Capital 9,694.76
Debt Weighting 30.02
Equity Weighting 69.98
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,349.621,346.751,425.881,509.231,969.322,176.072,404.522,656.962,935.893,244.12
Operating Cash Flow 512.79623.99597.72559.38488.77818.78904.73999.721,104.671,220.64
Capital Expenditure -42.58-33.13-56.72-65.19-68.49-75.68-83.63-92.41-102.11-112.83
Free Cash Flow 470.22590.86541.01494.19420.28743.09821.10907.311,002.561,107.81
WACC
PV LFCF 683.62694.93706.42718.11729.99
SUM PV LFCF 3,533.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.70
Free cash flow (t + 1) 1,129.97
Terminal Value 16,865.21
Present Value of Terminal Value 11,113.32

Intrinsic Value

Enterprise Value 14,646.40
Net Debt 2,467.07
Equity Value 12,179.32
Shares Outstanding 130.07
Equity Value Per Share 93.64