Discounted Cash Flow (DCF) Analysis Levered

Enterprise Bancorp, Inc. (EBTC)

$35

+0.35 (+1.01%)
All numbers are in Millions, Currency in USD
Stock DCF: 152.97 | 35 | 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 113.20120.82132.18147.38159.66174.02189.67206.73225.32245.58
Revenue (%)
Operating Cash Flow 37.9341.8043.6240.3462.2358.2863.5269.2375.4682.25
Operating Cash Flow (%)
Capital Expenditure -8.21-5.30-12.50-6.68-4.19-9.83-10.72-11.68-12.73-13.87
Capital Expenditure (%)
Free Cash Flow 29.7236.5031.1233.6658.0548.4552.8157.5562.7368.37

Weighted Average Cost Of Capital

Share price $ 35
Beta 0.541
Diluted Shares Outstanding 12.05
Cost of Debt
Tax Rate 24.37
After-tax Cost of Debt 6.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.068
Total Debt 88.08
Total Equity 421.80
Total Capital 509.88
Debt Weighting 17.28
Equity Weighting 82.72
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 113.20120.82132.18147.38159.66174.02189.67206.73225.32245.58
Operating Cash Flow 37.9341.8043.6240.3462.2358.2863.5269.2375.4682.25
Capital Expenditure -8.21-5.30-12.50-6.68-4.19-9.83-10.72-11.68-12.73-13.87
Free Cash Flow 29.7236.5031.1233.6658.0548.4552.8157.5562.7368.37
WACC
PV LFCF 45.6546.8848.1549.4550.78
SUM PV LFCF 240.90

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.13
Free cash flow (t + 1) 69.74
Terminal Value 1,688.60
Present Value of Terminal Value 1,254.11

Intrinsic Value

Enterprise Value 1,495.01
Net Debt -348.49
Equity Value 1,843.50
Shares Outstanding 12.05
Equity Value Per Share 152.97