Discounted Cash Flow (DCF) Analysis Levered

First Foundation Inc. (FFWM)

$5.89

-0.46 (-7.24%)

All numbers are in Millions, Currency in USD

Stock DCF: 81.39 | 5.89 | 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	176.30	193.87	243.85	294.96	328.75	384.76	450.32	527.06	616.86	721.97
Revenue (%)
Operating Cash Flow	50.98	60.44	67.44	96.93	101.05	116.47	136.31	159.54	186.73	218.54
Operating Cash Flow (%)
Capital Expenditure	-2.71	-2.23	-2.86	-3.21	-4.58	-4.88	-5.71	-6.69	-7.82	-9.16
Capital Expenditure (%)
Free Cash Flow	48.27	58.21	64.58	93.73	96.47	111.59	130.60	152.86	178.90	209.38

Weighted Average Cost Of Capital

Share price	$ 5.89
Beta	0.995
Diluted Shares Outstanding	56.49
Cost of Debt
Tax Rate	26.23
After-tax Cost of Debt	4.59%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.293
Total Debt	1,369.94
Total Equity	332.73
Total Capital	1,702.66
Debt Weighting	80.46
Equity Weighting	19.54
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	176.30	193.87	243.85	294.96	328.75	384.76	450.32	527.06	616.86	721.97
Operating Cash Flow	50.98	60.44	67.44	96.93	101.05	116.47	136.31	159.54	186.73	218.54
Capital Expenditure	-2.71	-2.23	-2.86	-3.21	-4.58	-4.88	-5.71	-6.69	-7.82	-9.16
Free Cash Flow	48.27	58.21	64.58	93.73	96.47	111.59	130.60	152.86	178.90	209.38
WACC
PV LFCF						105.76	117.32	130.14	144.36	160.13
SUM PV LFCF										657.70

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.51
Free cash flow (t + 1)	213.57
Terminal Value	6,084.68
Present Value of Terminal Value	4,653.39

Intrinsic Value

Enterprise Value	5,311.09
Net Debt	713.44
Equity Value	4,597.65
Shares Outstanding	56.49
Equity Value Per Share	81.39