Discounted Cash Flow (DCF) Analysis Levered

Financial Institutions, Inc. (FISI)

$23.86

-0.49 (-2.01%)
All numbers are in Millions, Currency in USD
Stock DCF: 70.31 | 23.86 | 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 147.24158.14169.94182.06199.56215.32232.34250.70270.51291.89
Revenue (%)
Operating Cash Flow 46.2865.1457.7143.4572.9671.9277.6183.7490.3697.50
Operating Cash Flow (%)
Capital Expenditure -7.74-2.84-3.64-4.26-9.40-7-7.55-8.15-8.79-9.49
Capital Expenditure (%)
Free Cash Flow 38.5462.3054.0739.1963.5664.9370.0675.5981.5788.01

Weighted Average Cost Of Capital

Share price $ 23.86
Beta 0.988
Diluted Shares Outstanding 16.06
Cost of Debt
Tax Rate 20.08
After-tax Cost of Debt 9.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.626
Total Debt 103.91
Total Equity 383.26
Total Capital 487.17
Debt Weighting 21.33
Equity Weighting 78.67
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 147.24158.14169.94182.06199.56215.32232.34250.70270.51291.89
Operating Cash Flow 46.2865.1457.7143.4572.9671.9277.6183.7490.3697.50
Capital Expenditure -7.74-2.84-3.64-4.26-9.40-7-7.55-8.15-8.79-9.49
Free Cash Flow 38.5462.3054.0739.1963.5664.9370.0675.5981.5788.01
WACC
PV LFCF 59.6659.1558.6558.1557.65
SUM PV LFCF 293.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.83
Free cash flow (t + 1) 89.77
Terminal Value 1,314.39
Present Value of Terminal Value 860.96

Intrinsic Value

Enterprise Value 1,154.21
Net Debt 24.80
Equity Value 1,129.41
Shares Outstanding 16.06
Equity Value Per Share 70.31