Discounted Cash Flow (DCF) Analysis Levered

First Financial Northwest, Inc. (FFNW)

$10.93

+0.28 (+2.63%)

All numbers are in Millions, Currency in USD

Stock DCF: 68.97 | 10.93 | undervalue

Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	43.05	44.91	48.84	51.60	54.82	58.24	61.88	65.74	69.84	74.20
Revenue (%)
Operating Cash Flow	13.08	11.97	18.44	27.99	20.43	21.70	23.06	24.50	26.02	27.65
Operating Cash Flow (%)
Capital Expenditure	-2.98	-2.28	-2.02	-0.91	-2.45	-2.61	-2.77	-2.94	-3.13	-3.32
Capital Expenditure (%)
Free Cash Flow	10.10	9.69	16.42	27.09	17.97	19.10	20.29	21.55	22.90	24.33

Weighted Average Cost Of Capital

Share price	$ 10.93
Beta	0.397
Diluted Shares Outstanding	9.10
Cost of Debt
Tax Rate	19.31
After-tax Cost of Debt	4.03%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.589
Total Debt	-
Total Equity	99.49
Total Capital	99.49
Debt Weighting	0.00
Equity Weighting	100.00
Wacc

Build Up Free Cash Flow

Year A/P	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected	2028 Projected
Revenue	43.05	44.91	48.84	51.60	54.82	58.24	61.88	65.74	69.84	74.20
Operating Cash Flow	13.08	11.97	18.44	27.99	20.43	21.70	23.06	24.50	26.02	27.65
Capital Expenditure	-2.98	-2.28	-2.02	-0.91	-2.45	-2.61	-2.77	-2.94	-3.13	-3.32
Free Cash Flow	10.10	9.69	16.42	27.09	17.97	19.10	20.29	21.55	22.90	24.33
WACC
PV LFCF					17.97	18.08	18.20	18.31	18.42	18.54
SUM PV LFCF										91.55

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.59
Free cash flow (t + 1)	24.82
Terminal Value	691.23
Present Value of Terminal Value	526.63

Intrinsic Value

Enterprise Value	618.18
Net Debt	-9.62
Equity Value	627.80
Shares Outstanding	9.10
Equity Value Per Share	68.97