Discounted Cash Flow (DCF) Analysis Levered
First Horizon Corporation (FHN)
$22.19
+0.19 (+0.86%)
All numbers are in Millions, Currency in USD
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 | 1,303.04 | 1,886.84 | 1,818.20 | 3,098 | 2,991 | 3,799.31 | 4,826.07 | 6,130.32 | 7,787.03 | 9,891.46 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | -17.36 | 234.30 | 830.29 | 172 | 741 | 661.67 | 840.49 | 1,067.63 | 1,356.15 | 1,722.65 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -53.05 | -47.99 | -49.16 | -58 | -53 | -98.49 | -125.11 | -158.92 | -201.87 | -256.43 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | -70.40 | 186.32 | 781.14 | 114 | 688 | 563.18 | 715.38 | 908.70 | 1,154.28 | 1,466.22 |
Weighted Average Cost Of Capital
Share price | $ 22.19 |
---|---|
Beta | 1.200 |
Diluted Shares Outstanding | 542 |
Cost of Debt | |
Tax Rate | 22.20 |
After-tax Cost of Debt | 5.17% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.453 |
Total Debt | 2,467 |
Total Equity | 12,026.98 |
Total Capital | 14,493.98 |
Debt Weighting | 17.02 |
Equity Weighting | 82.98 |
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 | 1,303.04 | 1,886.84 | 1,818.20 | 3,098 | 2,991 | 3,799.31 | 4,826.07 | 6,130.32 | 7,787.03 | 9,891.46 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | -17.36 | 234.30 | 830.29 | 172 | 741 | 661.67 | 840.49 | 1,067.63 | 1,356.15 | 1,722.65 |
Capital Expenditure | -53.05 | -47.99 | -49.16 | -58 | -53 | -98.49 | -125.11 | -158.92 | -201.87 | -256.43 |
Free Cash Flow | -70.40 | 186.32 | 781.14 | 114 | 688 | 563.18 | 715.38 | 908.70 | 1,154.28 | 1,466.22 |
WACC | ||||||||||
PV LFCF | 521.94 | 614.46 | 723.37 | 851.58 | 1,002.52 | |||||
SUM PV LFCF | 3,713.87 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.90 |
Free cash flow (t + 1) | 1,495.55 |
Terminal Value | 25,348.28 |
Present Value of Terminal Value | 17,331.71 |
Intrinsic Value
Enterprise Value | 21,045.57 |
---|---|
Net Debt | -13,587 |
Equity Value | 34,632.57 |
Shares Outstanding | 542 |
Equity Value Per Share | 63.90 |