Discounted Cash Flow (DCF) Analysis Levered

Comerica Incorporated (CMA)

$43.085

-0.97 (-2.21%)

All numbers are in Millions, Currency in USD

Stock DCF: 193.37 | 43.085 | 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	3,328	3,343	2,912	2,967	3,534	3,609.60	3,686.82	3,765.69	3,846.25	3,928.53
Revenue (%)
Operating Cash Flow	1,616	1,090	928	634	638	1,100.59	1,124.13	1,148.18	1,172.74	1,197.83
Operating Cash Flow (%)
Capital Expenditure	-90	-86	-79	-70	-91.43	-93.39	-95.39	-97.43	-99.51	-101.64
Capital Expenditure (%)
Free Cash Flow	1,526	1,004	849	564	546.57	1,007.20	1,028.74	1,050.75	1,073.23	1,096.19

Weighted Average Cost Of Capital

Share price	$ 43.085
Beta	1.227
Diluted Shares Outstanding	136.57
Cost of Debt
Tax Rate	22.02
After-tax Cost of Debt	2.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.304
Total Debt	6,235
Total Equity	5,883.95
Total Capital	12,118.95
Debt Weighting	51.45
Equity Weighting	48.55
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	3,328	3,343	2,912	2,967	3,534	3,609.60	3,686.82	3,765.69	3,846.25	3,928.53
Operating Cash Flow	1,616	1,090	928	634	638	1,100.59	1,124.13	1,148.18	1,172.74	1,197.83
Capital Expenditure	-90	-86	-79	-70	-91.43	-93.39	-95.39	-97.43	-99.51	-101.64
Free Cash Flow	1,526	1,004	849	564	546.57	1,007.20	1,028.74	1,050.75	1,073.23	1,096.19
WACC
PV LFCF						951.62	918.35	886.24	855.25	825.35
SUM PV LFCF										4,436.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.84
Free cash flow (t + 1)	1,118.11
Terminal Value	29,117.55
Present Value of Terminal Value	21,923.28

Intrinsic Value

Enterprise Value	26,360.09
Net Debt	-47
Equity Value	26,407.09
Shares Outstanding	136.57
Equity Value Per Share	193.37