Discounted Cash Flow (DCF) Analysis Levered

First Horizon Corporation (FHN)

$22.19

+0.19 (+0.86%)

All numbers are in Millions, Currency in USD

Stock DCF: 63.90 | 22.19 | 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	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