Discounted Cash Flow (DCF) Analysis Levered

CapStar Financial Holdings, Inc. (CSTR)

$17.33

-0.23 (-1.31%)

All numbers are in Millions, Currency in USD

Stock DCF: 12.88 | 17.33 | overvalue

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	67.15	92.02	119.57	133.85	120.61	141.43	165.83	194.45	228.01	267.36
Revenue (%)
Operating Cash Flow	33.36	-84.69	24.05	116.36	-23.72	12.74	14.94	17.52	20.54	24.08
Operating Cash Flow (%)
Capital Expenditure	-4.24	-1.58	-0.42	-0.50	-0.98	-2.71	-3.18	-3.72	-4.37	-5.12
Capital Expenditure (%)
Free Cash Flow	29.12	-86.27	23.63	115.86	-24.70	10.03	11.76	13.79	16.17	18.96

Weighted Average Cost Of Capital

Share price	$ 17.33
Beta	0.797
Diluted Shares Outstanding	22.06
Cost of Debt
Tax Rate	20.00
After-tax Cost of Debt	31.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.883
Total Debt	44.67
Total Equity	382.30
Total Capital	426.96
Debt Weighting	10.46
Equity Weighting	89.54
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	67.15	92.02	119.57	133.85	120.61	141.43	165.83	194.45	228.01	267.36
Operating Cash Flow	33.36	-84.69	24.05	116.36	-23.72	12.74	14.94	17.52	20.54	24.08
Capital Expenditure	-4.24	-1.58	-0.42	-0.50	-0.98	-2.71	-3.18	-3.72	-4.37	-5.12
Free Cash Flow	29.12	-86.27	23.63	115.86	-24.70	10.03	11.76	13.79	16.17	18.96
WACC
PV LFCF						9.09	9.66	10.27	10.91	11.60
SUM PV LFCF										51.54

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.33
Free cash flow (t + 1)	19.34
Terminal Value	232.20
Present Value of Terminal Value	142.04

Intrinsic Value

Enterprise Value	193.57
Net Debt	-90.64
Equity Value	284.21
Shares Outstanding	22.06
Equity Value Per Share	12.88