Discounted Cash Flow (DCF) Analysis Levered

First Financial Bankshares, Inc. (FFIN)

$46.72

-0.20 (-0.43%)

All numbers are in Millions, Currency in USD

Stock DCF: 59.69 | 46.72 | 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	319.38	364.47	386.95	477.68	499.56	559.90	627.53	703.33	788.27	883.48
Revenue (%)
Operating Cash Flow	190.27	188.99	204.12	210.67	353.23	312.41	350.15	392.44	439.84	492.96
Operating Cash Flow (%)
Capital Expenditure	-14.16	-17.65	-8.67	-16.45	-19.21	-21.06	-23.60	-26.45	-29.65	-33.23
Capital Expenditure (%)
Free Cash Flow	176.11	171.34	195.45	194.22	334.03	291.36	326.55	365.99	410.19	459.74

Weighted Average Cost Of Capital

Share price	$ 46.72
Beta	0.886
Diluted Shares Outstanding	142.54
Cost of Debt
Tax Rate	16.33
After-tax Cost of Debt	24.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.061
Total Debt	21.05
Total Equity	6,659.70
Total Capital	6,680.75
Debt Weighting	0.32
Equity Weighting	99.68
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	319.38	364.47	386.95	477.68	499.56	559.90	627.53	703.33	788.27	883.48
Operating Cash Flow	190.27	188.99	204.12	210.67	353.23	312.41	350.15	392.44	439.84	492.96
Capital Expenditure	-14.16	-17.65	-8.67	-16.45	-19.21	-21.06	-23.60	-26.45	-29.65	-33.23
Free Cash Flow	176.11	171.34	195.45	194.22	334.03	291.36	326.55	365.99	410.19	459.74
WACC
PV LFCF						272.01	284.63	297.83	311.65	326.11
SUM PV LFCF										1,492.24

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.11
Free cash flow (t + 1)	468.93
Terminal Value	9,176.73
Present Value of Terminal Value	6,509.35

Intrinsic Value

Enterprise Value	8,001.59
Net Debt	-507.54
Equity Value	8,509.12
Shares Outstanding	142.54
Equity Value Per Share	59.69