Discounted Cash Flow (DCF) Analysis Levered

Canadian Imperial Bank of Commerce (CM)

$43.31

-0.66 (-1.51%)
All numbers are in Millions, Currency in USD
Stock DCF: 548.99 | 43.31 | 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 15,87417,76018,51218,66619,96021,151.5922,414.3223,752.4325,170.4326,673.07
Revenue (%)
Operating Cash Flow 2,4579,86718,63560,295-3,33220,222.0721,429.3022,708.6124,064.2925,500.90
Operating Cash Flow (%)
Capital Expenditure --255-272-309-839-463.43-491.10-520.41-551.48-584.40
Capital Expenditure (%)
Free Cash Flow 2,4579,61218,36359,986-4,17119,758.6420,938.2122,188.2023,512.8124,916.50

Weighted Average Cost Of Capital

Share price $ 43.31
Beta 1.011
Diluted Shares Outstanding 900.37
Cost of Debt
Tax Rate 22.75
After-tax Cost of Debt 5.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.742
Total Debt 48,131
Total Equity 38,994.85
Total Capital 87,125.85
Debt Weighting 55.24
Equity Weighting 44.76
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 15,87417,76018,51218,66619,96021,151.5922,414.3223,752.4325,170.4326,673.07
Operating Cash Flow 2,4579,86718,63560,295-3,33220,222.0721,429.3022,708.6124,064.2925,500.90
Capital Expenditure --255-272-309-839-463.43-491.10-520.41-551.48-584.40
Free Cash Flow 2,4579,61218,36359,986-4,17119,758.6420,938.2122,188.2023,512.8124,916.50
WACC
PV LFCF 16,210.6116,081.6015,953.6215,826.6515,700.70
SUM PV LFCF 91,025.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.82
Free cash flow (t + 1) 25,414.83
Terminal Value 527,278.61
Present Value of Terminal Value 379,120.51

Intrinsic Value

Enterprise Value 470,145.79
Net Debt -24,144
Equity Value 494,289.79
Shares Outstanding 900.37
Equity Value Per Share 548.99