Discounted Cash Flow (DCF) Analysis Levered

First Horizon Corporation (FHN)

$11.71

0.00 (0.00%)
All numbers are in Millions, Currency in USD
Stock DCF: 54.68 | 11.71 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,886.841,818.202,5652,9913,529.824,165.704,916.145,801.766,846.928,080.379,536.02
Revenue (%)
Operating Cash Flow 234.30830.29172741790.36932.741,100.771,299.061,533.091,809.272,135.20
Operating Cash Flow (%)
Capital Expenditure -47.99-49.16-58-53-81.89-96.65-114.06-134.60-158.85-187.47-221.24
Capital Expenditure (%)
Free Cash Flow 186.32781.14114688708.46836.09986.711,164.461,374.241,621.801,913.96

Weighted Average Cost Of Capital

Share price $ 11.71
Beta 0.897
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 7.978
Total Debt 4,103
Total Equity 6,627.86
Total Capital 10,730.86
Debt Weighting 38.24
Equity Weighting 61.76
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 1,886.841,818.202,5652,9913,529.824,165.704,916.145,801.766,846.928,080.379,536.02
Operating Cash Flow 234.30830.29172741790.36932.741,100.771,299.061,533.091,809.272,135.20
Capital Expenditure -47.99-49.16-58-53-81.89-96.65-114.06-134.60-158.85-187.47-221.24
Free Cash Flow 186.32781.14114688708.46836.09986.711,164.461,374.241,621.801,913.96
WACC
PV LFCF 661.31728.50802.52884.06973.881,072.831,181.83
SUM PV LFCF 5,641

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.13
Free cash flow (t + 1) 1,952.24
Terminal Value 38,055.34
Present Value of Terminal Value 26,968.70

Intrinsic Value

Enterprise Value 32,609.70
Net Debt 1,658
Equity Value 30,951.70
Shares Outstanding 566
Equity Value Per Share 54.68