Discounted Cash Flow (DCF) Analysis Levered

1st Constitution Bancorp (FCCY)

$27.79

+1.02 (+3.81%)

All numbers are in Millions, Currency in USD

Stock DCF: 45.82 | 27.79 | undervalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	42.59	44.41	51.12	55.57	73.15	84.07	96.62	111.04	127.61	146.67
Revenue (%)
Operating Cash Flow	2.64	21.89	17.33	13.26	6.66	20.57	23.64	27.17	31.23	35.89
Operating Cash Flow (%)
Capital Expenditure	-0.46	-0.85	-0.65	-0.16	-0.42	-0.86	-0.99	-1.14	-1.30	-1.50
Capital Expenditure (%)
Free Cash Flow	2.18	21.05	16.68	13.10	6.24	19.71	22.66	26.04	29.93	34.39

Weighted Average Cost Of Capital

Share price	$ 27.79
Beta	0.625
Diluted Shares Outstanding	10.26
Cost of Debt
Tax Rate	26.76
After-tax Cost of Debt	17.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.651
Total Debt	45.77
Total Equity	285.15
Total Capital	330.92
Debt Weighting	13.83
Equity Weighting	86.17
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	42.59	44.41	51.12	55.57	73.15	84.07	96.62	111.04	127.61	146.67
Operating Cash Flow	2.64	21.89	17.33	13.26	6.66	20.57	23.64	27.17	31.23	35.89
Capital Expenditure	-0.46	-0.85	-0.65	-0.16	-0.42	-0.86	-0.99	-1.14	-1.30	-1.50
Free Cash Flow	2.18	21.05	16.68	13.10	6.24	19.71	22.66	26.04	29.93	34.39
WACC
PV LFCF						18.24	19.39	20.62	21.92	23.31
SUM PV LFCF										103.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.09
Free cash flow (t + 1)	35.08
Terminal Value	576.03
Present Value of Terminal Value	390.41

Intrinsic Value

Enterprise Value	493.89
Net Debt	23.77
Equity Value	470.11
Shares Outstanding	10.26
Equity Value Per Share	45.82