Discounted Cash Flow (DCF) Analysis Levered

CNFinance Holdings Limited (CNF)

$2.28

-0.03 (-1.30%)
All numbers are in Millions, Currency in USD
Stock DCF: 121.37 | 2.28 | 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 374.11286.21208.4999.56171.21157.97145.75134.48124.08114.49
Revenue (%)
Operating Cash Flow 1,332.661,299.111,119.58689.69919.25814.11751.15693.07639.47590.02
Operating Cash Flow (%)
Capital Expenditure -14.82-4.44-3.22-3.81-89.89-20.03-18.48-17.05-15.73-14.51
Capital Expenditure (%)
Free Cash Flow 1,317.831,294.671,116.36685.89829.36794.08732.68676.02623.74575.51

Weighted Average Cost Of Capital

Share price $ 2.28
Beta 0.062
Diluted Shares Outstanding 76.35
Cost of Debt
Tax Rate 21.57
After-tax Cost of Debt 7.94%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.503
Total Debt 1,240.98
Total Equity 174.09
Total Capital 1,415.07
Debt Weighting 87.70
Equity Weighting 12.30
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 374.11286.21208.4999.56171.21157.97145.75134.48124.08114.49
Operating Cash Flow 1,332.661,299.111,119.58689.69919.25814.11751.15693.07639.47590.02
Capital Expenditure -14.82-4.44-3.22-3.81-89.89-20.03-18.48-17.05-15.73-14.51
Free Cash Flow 1,317.831,294.671,116.36685.89829.36794.08732.68676.02623.74575.51
WACC
PV LFCF 738.61633.89544.02466.89400.69
SUM PV LFCF 2,784.10

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.51
Free cash flow (t + 1) 587.02
Terminal Value 10,653.74
Present Value of Terminal Value 7,417.51

Intrinsic Value

Enterprise Value 10,201.60
Net Debt 934.22
Equity Value 9,267.39
Shares Outstanding 76.35
Equity Value Per Share 121.37