Discounted Cash Flow (DCF) Analysis Levered

First Interstate BancSystem, Inc. (FIBK)

$28.3

+0.17 (+0.60%)

All numbers are in Millions, Currency in USD

Stock DCF: 407.07 | 28.3 | 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	575.80	644.90	653.70	638.70	1,105.80	1,338.58	1,620.36	1,961.46	2,374.37	2,874.20
Revenue (%)
Operating Cash Flow	220.20	127.30	268.30	282.30	534.40	512.81	620.77	751.44	909.63	1,101.11
Operating Cash Flow (%)
Capital Expenditure	-6.10	-16.60	-30.20	-10.30	-10.50	-28.95	-35.05	-42.43	-51.36	-62.17
Capital Expenditure (%)
Free Cash Flow	214.10	110.70	238.10	272	523.90	483.86	585.72	709.01	858.27	1,038.94

Weighted Average Cost Of Capital

Share price	$ 28.3
Beta	0.905
Diluted Shares Outstanding	61.76
Cost of Debt
Tax Rate	21.35
After-tax Cost of Debt	3.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.527
Total Debt	2,610.90
Total Equity	1,747.89
Total Capital	4,358.79
Debt Weighting	59.90
Equity Weighting	40.10
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	575.80	644.90	653.70	638.70	1,105.80	1,338.58	1,620.36	1,961.46	2,374.37	2,874.20
Operating Cash Flow	220.20	127.30	268.30	282.30	534.40	512.81	620.77	751.44	909.63	1,101.11
Capital Expenditure	-6.10	-16.60	-30.20	-10.30	-10.50	-28.95	-35.05	-42.43	-51.36	-62.17
Free Cash Flow	214.10	110.70	238.10	272	523.90	483.86	585.72	709.01	858.27	1,038.94
WACC
PV LFCF						458.98	527.04	605.18	694.91	797.95
SUM PV LFCF										3,084.06

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.42
Free cash flow (t + 1)	1,059.72
Terminal Value	30,985.96
Present Value of Terminal Value	23,798.52

Intrinsic Value

Enterprise Value	26,882.58
Net Debt	1,740.50
Equity Value	25,142.08
Shares Outstanding	61.76
Equity Value Per Share	407.07