Discounted Cash Flow (DCF) Analysis Levered

First Interstate BancSystem, Inc. (FIBK)

$40.35

+0.16 (+0.40%)
All numbers are in Millions, Currency in USD
Stock DCF: 92.71 | 40.35 | 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 491.60575.80644.90653.70638.70683.73731.93783.53838.77897.90
Revenue (%)
Operating Cash Flow 154.68220.20127.30268.30140208.41223.11238.84255.67273.70
Operating Cash Flow (%)
Capital Expenditure -38.99-6.10-16.60-30.20-25.84-27.66-29.61-31.70-33.94-36.33
Capital Expenditure (%)
Free Cash Flow 115.69214.10110.70238.10114.16180.75193.49207.13221.74237.37

Weighted Average Cost Of Capital

Share price $ 40.35
Beta 0.954
Diluted Shares Outstanding 61.76
Cost of Debt
Tax Rate 22.48
After-tax Cost of Debt 3.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.309
Total Debt 199.40
Total Equity 2,492.14
Total Capital 2,691.54
Debt Weighting 7.41
Equity Weighting 92.59
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 491.60575.80644.90653.70638.70683.73731.93783.53838.77897.90
Operating Cash Flow 154.68220.20127.30268.30140208.41223.11238.84255.67273.70
Capital Expenditure -38.99-6.10-16.60-30.20-25.84-27.66-29.61-31.70-33.94-36.33
Free Cash Flow 115.69214.10110.70238.10114.16180.75193.49207.13221.74237.37
WACC
PV LFCF 167.39165.95164.52163.10161.70
SUM PV LFCF 822.66

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.98
Free cash flow (t + 1) 242.11
Terminal Value 4,048.74
Present Value of Terminal Value 2,758.06

Intrinsic Value

Enterprise Value 3,580.72
Net Debt -2,145.30
Equity Value 5,726.02
Shares Outstanding 61.76
Equity Value Per Share 92.71