Discounted Cash Flow (DCF) Analysis Levered

First Business Financial Services, ... (FBIZ)

$30.57

+0.45 (+1.49%)

All numbers are in Millions, Currency in USD

Stock DCF: 200.36 | 30.57 | 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	83.43	89.19	101.62	112.76	127.85	142.29	158.37	176.26	196.18	218.34
Revenue (%)
Operating Cash Flow	25.69	28.99	26.63	35.99	38.64	43.16	48.04	53.46	59.50	66.22
Operating Cash Flow (%)
Capital Expenditure	-0.97	-0.23	-0.26	-0.63	-0.71	-0.79	-0.88	-0.98	-1.09	-1.22
Capital Expenditure (%)
Free Cash Flow	24.73	28.76	26.37	35.36	37.93	42.37	47.15	52.48	58.41	65.01

Weighted Average Cost Of Capital

Share price	$ 30.57
Beta	0.725
Diluted Shares Outstanding	8.34
Cost of Debt
Tax Rate	21.79
After-tax Cost of Debt	3.84%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.802
Total Debt	466.98
Total Equity	254.96
Total Capital	721.94
Debt Weighting	64.68
Equity Weighting	35.32
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	83.43	89.19	101.62	112.76	127.85	142.29	158.37	176.26	196.18	218.34
Operating Cash Flow	25.69	28.99	26.63	35.99	38.64	43.16	48.04	53.46	59.50	66.22
Capital Expenditure	-0.97	-0.23	-0.26	-0.63	-0.71	-0.79	-0.88	-0.98	-1.09	-1.22
Free Cash Flow	24.73	28.76	26.37	35.36	37.93	42.37	47.15	52.48	58.41	65.01
WACC
PV LFCF						40.39	42.86	45.48	48.25	51.20
SUM PV LFCF										228.18

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.89
Free cash flow (t + 1)	66.31
Terminal Value	2,294.35
Present Value of Terminal Value	1,807.13

Intrinsic Value

Enterprise Value	2,035.31
Net Debt	364.30
Equity Value	1,671
Shares Outstanding	8.34
Equity Value Per Share	200.36