Discounted Cash Flow (DCF) Analysis Levered

The First Bancshares, Inc. (FBMS)

$26.04

-0.40 (-1.51%)

All numbers are in Millions, Currency in USD

Stock DCF: 125.12 | 26.04 | 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	102.34	145.92	183.24	189.88	210.74	254.34	306.97	370.48	447.14	539.65
Revenue (%)
Operating Cash Flow	31.50	44.70	51.19	95.72	90.03	92.82	112.03	135.21	163.18	196.94
Operating Cash Flow (%)
Capital Expenditure	-4.06	-7.89	-4.40	-7.12	-15.52	-11.64	-14.05	-16.96	-20.47	-24.71
Capital Expenditure (%)
Free Cash Flow	27.44	36.81	46.79	88.59	74.51	81.18	97.97	118.24	142.71	172.24

Weighted Average Cost Of Capital

Share price	$ 26.04
Beta	0.897
Diluted Shares Outstanding	21.17
Cost of Debt
Tax Rate	20.04
After-tax Cost of Debt	6.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.870
Total Debt	284.86
Total Equity	551.18
Total Capital	836.04
Debt Weighting	34.07
Equity Weighting	65.93
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	102.34	145.92	183.24	189.88	210.74	254.34	306.97	370.48	447.14	539.65
Operating Cash Flow	31.50	44.70	51.19	95.72	90.03	92.82	112.03	135.21	163.18	196.94
Capital Expenditure	-4.06	-7.89	-4.40	-7.12	-15.52	-11.64	-14.05	-16.96	-20.47	-24.71
Free Cash Flow	27.44	36.81	46.79	88.59	74.51	81.18	97.97	118.24	142.71	172.24
WACC
PV LFCF						75.62	85.02	95.58	107.46	120.81
SUM PV LFCF										484.49

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.35
Free cash flow (t + 1)	175.68
Terminal Value	3,283.80
Present Value of Terminal Value	2,303.38

Intrinsic Value

Enterprise Value	2,787.88
Net Debt	139.54
Equity Value	2,648.34
Shares Outstanding	21.17
Equity Value Per Share	125.12