Discounted Cash Flow (DCF) Analysis Levered

Comerica Incorporated (CMA)

$49.59

+0.21 (+0.43%)
All numbers are in Millions, Currency in USD
Stock DCF: 196.63 | 49.59 | 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 3,3432,9122,9673,5345,2956,061.946,939.957,945.159,095.9310,413.40
Revenue (%)
Operating Cash Flow 1,0909286346381,375.311,574.511,802.572,063.662,362.562,704.75
Operating Cash Flow (%)
Capital Expenditure -86-79-70-82-131.91-151.02-172.89-197.93-226.60-259.43
Capital Expenditure (%)
Free Cash Flow 1,0048495645561,243.401,423.501,629.681,865.722,135.952,445.33

Weighted Average Cost Of Capital

Share price $ 49.59
Beta 1.309
Diluted Shares Outstanding 132.58
Cost of Debt
Tax Rate 23.34
After-tax Cost of Debt 6.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.337
Total Debt 9,771
Total Equity 6,574.44
Total Capital 16,345.44
Debt Weighting 59.78
Equity Weighting 40.22
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 3,3432,9122,9673,5345,2956,061.946,939.957,945.159,095.9310,413.40
Operating Cash Flow 1,0909286346381,375.311,574.511,802.572,063.662,362.562,704.75
Capital Expenditure -86-79-70-82-131.91-151.02-172.89-197.93-226.60-259.43
Free Cash Flow 1,0048495645561,243.401,423.501,629.681,865.722,135.952,445.33
WACC
PV LFCF 1,320.991,403.421,490.991,584.021,682.87
SUM PV LFCF 7,482.28

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.76
Free cash flow (t + 1) 2,494.24
Terminal Value 43,302.71
Present Value of Terminal Value 29,800.75

Intrinsic Value

Enterprise Value 37,283.03
Net Debt 11,214
Equity Value 26,069.03
Shares Outstanding 132.58
Equity Value Per Share 196.63