Discounted Cash Flow (DCF) Analysis Levered

Citizens Financial Group, Inc. (CFG)

$26.63

+0.07 (+0.26%)

All numbers are in Millions, Currency in USD

Stock DCF: 83.30 | 26.63 | 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	6,128	6,491	6,905	6,647	8,021	8,607.26	9,236.37	9,911.46	10,635.90	11,413.28
Revenue (%)
Operating Cash Flow	1,767	1,697	111	2,275	4,119	2,447.30	2,626.18	2,818.12	3,024.10	3,245.14
Operating Cash Flow (%)
Capital Expenditure	-485	-366	-118	-124	-126	-321.88	-345.41	-370.66	-397.75	-426.82
Capital Expenditure (%)
Free Cash Flow	1,282	1,331	-7	2,151	3,993	2,125.42	2,280.77	2,447.47	2,626.36	2,818.32

Weighted Average Cost Of Capital

Share price	$ 26.63
Beta	1.326
Diluted Shares Outstanding	477.80
Cost of Debt
Tax Rate	21.92
After-tax Cost of Debt	5.15%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.803
Total Debt	15,890
Total Equity	12,723.90
Total Capital	28,613.90
Debt Weighting	55.53
Equity Weighting	44.47
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	6,128	6,491	6,905	6,647	8,021	8,607.26	9,236.37	9,911.46	10,635.90	11,413.28
Operating Cash Flow	1,767	1,697	111	2,275	4,119	2,447.30	2,626.18	2,818.12	3,024.10	3,245.14
Capital Expenditure	-485	-366	-118	-124	-126	-321.88	-345.41	-370.66	-397.75	-426.82
Free Cash Flow	1,282	1,331	-7	2,151	3,993	2,125.42	2,280.77	2,447.47	2,626.36	2,818.32
WACC
PV LFCF						1,974.01	1,967.39	1,960.80	1,954.23	1,947.67
SUM PV LFCF										9,804.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.67
Free cash flow (t + 1)	2,874.68
Terminal Value	50,699.90
Present Value of Terminal Value	35,037.53

Intrinsic Value

Enterprise Value	44,841.64
Net Debt	5,040
Equity Value	39,801.64
Shares Outstanding	477.80
Equity Value Per Share	83.30