Discounted Cash Flow (DCF) Analysis Levered

Community Trust Bancorp, Inc. (CTBI)

$33.7

-0.91 (-2.63%)

All numbers are in Millions, Currency in USD

Stock DCF: 75.18 | 33.7 | 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	194.11	195.07	205.55	223.54	227.02	236.20	245.75	255.69	266.03	276.79
Revenue (%)
Operating Cash Flow	65.49	83.46	62.38	115.69	99.68	95.68	99.55	103.57	107.76	112.12
Operating Cash Flow (%)
Capital Expenditure	-2.83	-2.57	-1.48	-2.37	-6.22	-3.45	-3.59	-3.73	-3.88	-4.04
Capital Expenditure (%)
Free Cash Flow	62.66	80.89	60.90	113.32	93.47	92.23	95.96	99.84	103.88	108.08

Weighted Average Cost Of Capital

Share price	$ 33.7
Beta	0.714
Diluted Shares Outstanding	17.85
Cost of Debt
Tax Rate	19.03
After-tax Cost of Debt	30.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.008
Total Debt	75.82
Total Equity	601.58
Total Capital	677.40
Debt Weighting	11.19
Equity Weighting	88.81
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	194.11	195.07	205.55	223.54	227.02	236.20	245.75	255.69	266.03	276.79
Operating Cash Flow	65.49	83.46	62.38	115.69	99.68	95.68	99.55	103.57	107.76	112.12
Capital Expenditure	-2.83	-2.57	-1.48	-2.37	-6.22	-3.45	-3.59	-3.73	-3.88	-4.04
Free Cash Flow	62.66	80.89	60.90	113.32	93.47	92.23	95.96	99.84	103.88	108.08
WACC
PV LFCF						84.11	79.81	75.73	71.86	68.19
SUM PV LFCF										379.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.65
Free cash flow (t + 1)	110.24
Terminal Value	1,441.05
Present Value of Terminal Value	909.15

Intrinsic Value

Enterprise Value	1,288.85
Net Debt	-53.11
Equity Value	1,341.96
Shares Outstanding	17.85
Equity Value Per Share	75.18