Discounted Cash Flow (DCF) Analysis Levered

First Business Financial Services, ... (FBIZ)

$36.499

+0.11 (+0.30%)

All numbers are in Millions, Currency in USD

Stock DCF: 232.32 | 36.499 | 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	74.49	83.43	89.19	101.62	112.76	125.11	138.81	154.02	170.88	189.60
Revenue (%)
Operating Cash Flow	22.41	25.69	28.99	26.63	35.99	37.91	42.06	46.67	51.78	57.45
Operating Cash Flow (%)
Capital Expenditure	-1.24	-0.97	-0.23	-0.26	-0.94	-1.04	-1.16	-1.29	-1.43	-1.58
Capital Expenditure (%)
Free Cash Flow	21.17	24.73	28.76	26.37	35.05	36.87	40.90	45.38	50.35	55.87

Weighted Average Cost Of Capital

Share price	$ 36.499
Beta	0.746
Diluted Shares Outstanding	8.34
Cost of Debt
Tax Rate	23.97
After-tax Cost of Debt	2.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.161
Total Debt	418.93
Total Equity	304.40
Total Capital	723.34
Debt Weighting	57.92
Equity Weighting	42.08
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	74.49	83.43	89.19	101.62	112.76	125.11	138.81	154.02	170.88	189.60
Operating Cash Flow	22.41	25.69	28.99	26.63	35.99	37.91	42.06	46.67	51.78	57.45
Capital Expenditure	-1.24	-0.97	-0.23	-0.26	-0.94	-1.04	-1.16	-1.29	-1.43	-1.58
Free Cash Flow	21.17	24.73	28.76	26.37	35.05	36.87	40.90	45.38	50.35	55.87
WACC
PV LFCF						35.38	37.67	40.10	42.70	45.46
SUM PV LFCF										201.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.21
Free cash flow (t + 1)	56.99
Terminal Value	2,578.53
Present Value of Terminal Value	2,098.10

Intrinsic Value

Enterprise Value	2,299.40
Net Debt	361.82
Equity Value	1,937.57
Shares Outstanding	8.34
Equity Value Per Share	232.32