Discounted Cash Flow (DCF) Analysis Levered

CVB Financial Corp. (CVBF)

$26.36

+0.13 (+0.50%)

All numbers are in Millions, Currency in USD

Stock DCF: 96.54 | 26.36 | undervalue

Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	321.05	392.53	484.35	464.24	461.75	509.04	561.17	618.65	682.01	751.86
Revenue (%)
Operating Cash Flow	139.59	168.38	208.18	185.10	195.24	215.33	237.39	261.70	288.51	318.06
Operating Cash Flow (%)
Capital Expenditure	-4.89	-4.19	-5.52	-4.67	-4.68	-5.86	-6.46	-7.12	-7.85	-8.65
Capital Expenditure (%)
Free Cash Flow	134.70	164.18	202.66	180.42	190.56	209.48	230.93	254.59	280.66	309.41

Weighted Average Cost Of Capital

Share price	$ 26.36
Beta	0.336
Diluted Shares Outstanding	135.18
Cost of Debt
Tax Rate	28.60
After-tax Cost of Debt	190.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.372
Total Debt	2.28
Total Equity	3,563.45
Total Capital	3,565.73
Debt Weighting	0.06
Equity Weighting	99.94
Wacc

Build Up Free Cash Flow

Year A/P	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Projected	2023 Projected	2024 Projected	2025 Projected	2026 Projected
Revenue	321.05	392.53	484.35	464.24	461.75	509.04	561.17	618.65	682.01	751.86
Operating Cash Flow	139.59	168.38	208.18	185.10	195.24	215.33	237.39	261.70	288.51	318.06
Capital Expenditure	-4.89	-4.19	-5.52	-4.67	-4.68	-5.86	-6.46	-7.12	-7.85	-8.65
Free Cash Flow	134.70	164.18	202.66	180.42	190.56	209.48	230.93	254.59	280.66	309.41
WACC
PV LFCF						200.48	211.51	223.16	235.44	248.40
SUM PV LFCF										1,118.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.49
Free cash flow (t + 1)	315.59
Terminal Value	12,674.47
Present Value of Terminal Value	10,175.51

Intrinsic Value

Enterprise Value	11,294.50
Net Debt	-1,756.27
Equity Value	13,050.76
Shares Outstanding	135.18
Equity Value Per Share	96.54