Discounted Cash Flow (DCF) Analysis Levered

First Commonwealth Financial Corpor... (FCF)

$13.91

+0.66 (+4.98%)

All numbers are in Millions, Currency in USD

Stock DCF: 31.04 | 13.91 | 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	340.86	355.35	362.75	385.30	410.93	430.66	451.33	472.99	495.70	519.50
Revenue (%)
Operating Cash Flow	135.26	107.63	105.70	165.05	151.41	154	161.39	169.14	177.26	185.77
Operating Cash Flow (%)
Capital Expenditure	-9.60	-17.38	-7.61	-10.64	-11.21	-13.17	-13.81	-14.47	-15.16	-15.89
Capital Expenditure (%)
Free Cash Flow	125.66	90.25	98.08	154.41	140.21	140.82	147.58	154.67	162.09	169.87

Weighted Average Cost Of Capital

Share price	$ 13.91
Beta	0.945
Diluted Shares Outstanding	93.89
Cost of Debt
Tax Rate	19.98
After-tax Cost of Debt	3.04%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.158
Total Debt	466.22
Total Equity	1,305.97
Total Capital	1,772.20
Debt Weighting	26.31
Equity Weighting	73.69
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	340.86	355.35	362.75	385.30	410.93	430.66	451.33	472.99	495.70	519.50
Operating Cash Flow	135.26	107.63	105.70	165.05	151.41	154	161.39	169.14	177.26	185.77
Capital Expenditure	-9.60	-17.38	-7.61	-10.64	-11.21	-13.17	-13.81	-14.47	-15.16	-15.89
Free Cash Flow	125.66	90.25	98.08	154.41	140.21	140.82	147.58	154.67	162.09	169.87
WACC
PV LFCF						115.57	113.39	111.26	109.17	107.11
SUM PV LFCF										634.88

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.81
Free cash flow (t + 1)	173.27
Terminal Value	3,602.31
Present Value of Terminal Value	2,591.32

Intrinsic Value

Enterprise Value	3,226.20
Net Debt	311.98
Equity Value	2,914.22
Shares Outstanding	93.89
Equity Value Per Share	31.04