Discounted Cash Flow (DCF) Analysis Levered

Citizens Financial Group, Inc. (CFG)

$40.87

+0.57 (+1.41%)
All numbers are in Millions, Currency in USD
Stock DCF: 65.03 | 40.87 | 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 5,7076,1236,4856,9056,6476,911.917,187.377,473.827,771.688,081.41
Revenue (%)
Operating Cash Flow 1,8831,7671,6971112,2751,712.141,780.381,851.331,925.112,001.84
Operating Cash Flow (%)
Capital Expenditure -440-485-366-118-124-343.51-357.20-371.43-386.24-401.63
Capital Expenditure (%)
Free Cash Flow 1,4431,2821,331-72,1511,368.631,423.181,479.901,538.881,600.21

Weighted Average Cost Of Capital

Share price $ 40.87
Beta 1.411
Diluted Shares Outstanding 426.87
Cost of Debt
Tax Rate 22.10
After-tax Cost of Debt 3.77%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.402
Total Debt 7,005
Total Equity 17,446.10
Total Capital 24,451.10
Debt Weighting 28.65
Equity Weighting 71.35
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 5,7076,1236,4856,9056,6476,911.917,187.377,473.827,771.688,081.41
Operating Cash Flow 1,8831,7671,6971112,2751,712.141,780.381,851.331,925.112,001.84
Capital Expenditure -440-485-366-118-124-343.51-357.20-371.43-386.24-401.63
Free Cash Flow 1,4431,2821,331-72,1511,368.631,423.181,479.901,538.881,600.21
WACC
PV LFCF 1,269.721,224.911,181.671,139.961,099.73
SUM PV LFCF 5,915.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.79
Free cash flow (t + 1) 1,632.21
Terminal Value 28,190.20
Present Value of Terminal Value 19,373.40

Intrinsic Value

Enterprise Value 25,289.38
Net Debt -2,469
Equity Value 27,758.38
Shares Outstanding 426.87
Equity Value Per Share 65.03