Discounted Cash Flow (DCF) Analysis Levered
First Horizon Corporation (FHN)
$10.99
+0.01 (+0.00%)
All numbers are in Millions, Currency in USD
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 | 1,886.84 | 1,818.20 | 3,154 | 3,071 | 3,209 | 3,784.15 | 4,462.39 | 5,262.19 | 6,205.33 | 7,317.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 234.30 | 830.29 | 172 | 741 | 2,311 | 1,208.52 | 1,425.13 | 1,680.55 | 1,981.76 | 2,336.95 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -47.99 | -49.16 | -58 | -53 | -28 | -73.29 | -86.43 | -101.92 | -120.19 | -141.73 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 186.32 | 781.14 | 114 | 688 | 2,283 | 1,135.23 | 1,338.70 | 1,578.63 | 1,861.57 | 2,195.22 |
Weighted Average Cost Of Capital
| Share price | $ 10.99 |
|---|---|
| Beta | 0.960 |
| Diluted Shares Outstanding | 566 |
| Cost of Debt | |
| Tax Rate | 22.35 |
| After-tax Cost of Debt | 5.75% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 9.128 |
| Total Debt | 4,103 |
| Total Equity | 6,220.34 |
| Total Capital | 10,323.34 |
| Debt Weighting | 39.74 |
| Equity Weighting | 60.26 |
| 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 | 1,886.84 | 1,818.20 | 3,154 | 3,071 | 3,209 | 3,784.15 | 4,462.39 | 5,262.19 | 6,205.33 | 7,317.52 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 234.30 | 830.29 | 172 | 741 | 2,311 | 1,208.52 | 1,425.13 | 1,680.55 | 1,981.76 | 2,336.95 |
| Capital Expenditure | -47.99 | -49.16 | -58 | -53 | -28 | -73.29 | -86.43 | -101.92 | -120.19 | -141.73 |
| Free Cash Flow | 186.32 | 781.14 | 114 | 688 | 2,283 | 1,135.23 | 1,338.70 | 1,578.63 | 1,861.57 | 2,195.22 |
| WACC | ||||||||||
| PV LFCF | 1,053.19 | 1,152.19 | 1,260.51 | 1,379.01 | 1,508.64 | |||||
| SUM PV LFCF | 6,353.54 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.79 |
| Free cash flow (t + 1) | 2,239.13 |
| Terminal Value | 38,672.36 |
| Present Value of Terminal Value | 26,577.14 |
Intrinsic Value
| Enterprise Value | 32,930.68 |
|---|---|
| Net Debt | 1,658 |
| Equity Value | 31,272.68 |
| Shares Outstanding | 566 |
| Equity Value Per Share | 55.25 |