Discounted Cash Flow (DCF) Analysis Levered

Financial Institutions, Inc. (FISI)

$16.875

+0.17 (+0.99%)

All numbers are in Millions, Currency in USD

Stock DCF: 90.08 | 16.875 | 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	158.14	169.94	182.06	199.56	212.35	228.60	246.10	264.94	285.21	307.04
Revenue (%)
Operating Cash Flow	65.14	57.71	43.45	72.96	133.57	90.75	97.69	105.17	113.22	121.89
Operating Cash Flow (%)
Capital Expenditure	-2.84	-3.64	-4.26	-9.40	-8.37	-6.83	-7.35	-7.91	-8.52	-9.17
Capital Expenditure (%)
Free Cash Flow	62.30	54.07	39.19	63.56	125.20	83.92	90.34	97.26	104.70	112.72

Weighted Average Cost Of Capital

Share price	$ 16.875
Beta	0.915
Diluted Shares Outstanding	15.47
Cost of Debt
Tax Rate	20.29
After-tax Cost of Debt	8.20%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.935
Total Debt	279.22
Total Equity	261.07
Total Capital	540.30
Debt Weighting	51.68
Equity Weighting	48.32
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	158.14	169.94	182.06	199.56	212.35	228.60	246.10	264.94	285.21	307.04
Operating Cash Flow	65.14	57.71	43.45	72.96	133.57	90.75	97.69	105.17	113.22	121.89
Capital Expenditure	-2.84	-3.64	-4.26	-9.40	-8.37	-6.83	-7.35	-7.91	-8.52	-9.17
Free Cash Flow	62.30	54.07	39.19	63.56	125.20	83.92	90.34	97.26	104.70	112.72
WACC
PV LFCF						77.30	76.66	76.02	75.38	74.75
SUM PV LFCF										380.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.56
Free cash flow (t + 1)	114.97
Terminal Value	1,752.59
Present Value of Terminal Value	1,162.34

Intrinsic Value

Enterprise Value	1,542.45
Net Debt	148.76
Equity Value	1,393.70
Shares Outstanding	15.47
Equity Value Per Share	90.08