Discounted Cash Flow (DCF) Analysis Levered
Fifth Third Bancorp (FITB)
$25.91
+0.21 (+0.82%)
All numbers are in Millions, Currency in USD
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 | 6,807 | 8,203 | 7,491 | 7,799 | 8,295 | 8,757.45 | 9,245.67 | 9,761.12 | 10,305.30 | 10,879.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| Revenue (%) | ||||||||||
| Operating Cash Flow | 2,856 | 1,824 | 371 | 2,704 | 6,428 | 3,175.60 | 3,352.64 | 3,539.55 | 3,736.88 | 3,945.21 |
| Operating Cash Flow (%) | ||||||||||
| Capital Expenditure | -134 | -304 | -358 | -309 | -472 | -352.15 | -371.78 | -392.51 | -414.39 | -437.50 |
| Capital Expenditure (%) | ||||||||||
| Free Cash Flow | 2,722 | 1,520 | 13 | 2,395 | 5,956 | 2,823.45 | 2,980.86 | 3,147.04 | 3,322.49 | 3,507.72 |
Weighted Average Cost Of Capital
| Share price | $ 25.91 |
|---|---|
| Beta | 1.214 |
| Diluted Shares Outstanding | 694.95 |
| Cost of Debt | |
| Tax Rate | 20.92 |
| After-tax Cost of Debt | 4.17% |
| Risk-Free Rate | |
| Market Risk Premium | |
| Cost of Equity | 10.271 |
| Total Debt | 18,552 |
| Total Equity | 18,006.21 |
| Total Capital | 36,558.21 |
| Debt Weighting | 50.75 |
| Equity Weighting | 49.25 |
| 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 | 6,807 | 8,203 | 7,491 | 7,799 | 8,295 | 8,757.45 | 9,245.67 | 9,761.12 | 10,305.30 | 10,879.82 |
|---|---|---|---|---|---|---|---|---|---|---|
| Operating Cash Flow | 2,856 | 1,824 | 371 | 2,704 | 6,428 | 3,175.60 | 3,352.64 | 3,539.55 | 3,736.88 | 3,945.21 |
| Capital Expenditure | -134 | -304 | -358 | -309 | -472 | -352.15 | -371.78 | -392.51 | -414.39 | -437.50 |
| Free Cash Flow | 2,722 | 1,520 | 13 | 2,395 | 5,956 | 2,823.45 | 2,980.86 | 3,147.04 | 3,322.49 | 3,507.72 |
| WACC | ||||||||||
| PV LFCF | 2,634.55 | 2,595.34 | 2,556.72 | 2,518.67 | 2,481.18 | |||||
| SUM PV LFCF | 12,786.46 |
Terminal Value
| Growth in perpetuity method: | |
|---|---|
| Long-term growth rate | |
| WACC (%) | 7.17 |
| Free cash flow (t + 1) | 3,577.87 |
| Terminal Value | 69,204.47 |
| Present Value of Terminal Value | 48,951.73 |
Intrinsic Value
| Enterprise Value | 61,738.19 |
|---|---|
| Net Debt | 15,086 |
| Equity Value | 46,652.19 |
| Shares Outstanding | 694.95 |
| Equity Value Per Share | 67.13 |