Discounted Cash Flow (DCF) Analysis Levered
Fifth Third Bancorp (FITB)
$25.95
+1.16 (+4.68%)
All numbers are in Millions, Currency in USD
Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 7,253 | 7,373 | 7,676 | 8,178 | 8,513.41 | 8,862.57 | 9,226.05 | 9,604.44 | 9,998.35 |
---|---|---|---|---|---|---|---|---|---|
Revenue (%) | |||||||||
Operating Cash Flow | 1,824 | 371 | 2,704 | 6,428 | 3,064.99 | 3,190.70 | 3,321.56 | 3,457.79 | 3,599.60 |
Operating Cash Flow (%) | |||||||||
Capital Expenditure | -304 | -358 | -309 | -472 | -401.07 | -417.52 | -434.64 | -452.47 | -471.02 |
Capital Expenditure (%) | |||||||||
Free Cash Flow | 1,520 | 13 | 2,395 | 5,956 | 2,663.93 | 2,773.18 | 2,886.92 | 3,005.32 | 3,128.58 |
Weighted Average Cost Of Capital
Share price | $ 25.95 |
---|---|
Beta | 1.191 |
Diluted Shares Outstanding | 694.95 |
Cost of Debt | |
Tax Rate | 20.92 |
After-tax Cost of Debt | 4.29% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 9.314 |
Total Debt | 18,040 |
Total Equity | 18,034 |
Total Capital | 36,074 |
Debt Weighting | 50.01 |
Equity Weighting | 49.99 |
Wacc |
Build Up Free Cash Flow
Year A/P | 2019 Actual | 2020 Actual | 2021 Actual | 2022 Actual | 2023 Projected | 2024 Projected | 2025 Projected | 2026 Projected | 2027 Projected |
Revenue | 7,253 | 7,373 | 7,676 | 8,178 | 8,513.41 | 8,862.57 | 9,226.05 | 9,604.44 | 9,998.35 |
---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,824 | 371 | 2,704 | 6,428 | 3,064.99 | 3,190.70 | 3,321.56 | 3,457.79 | 3,599.60 |
Capital Expenditure | -304 | -358 | -309 | -472 | -401.07 | -417.52 | -434.64 | -452.47 | -471.02 |
Free Cash Flow | 1,520 | 13 | 2,395 | 5,956 | 2,663.93 | 2,773.18 | 2,886.92 | 3,005.32 | 3,128.58 |
WACC | |||||||||
PV LFCF | 2,663.93 | 2,596.61 | 2,531 | 2,467.05 | 2,404.71 | ||||
SUM PV LFCF | 11,857.01 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 6.80 |
Free cash flow (t + 1) | 3,191.15 |
Terminal Value | 66,482.30 |
Present Value of Terminal Value | 47,846.45 |
Intrinsic Value
Enterprise Value | 59,703.47 |
---|---|
Net Debt | 14,574 |
Equity Value | 45,129.47 |
Shares Outstanding | 694.95 |
Equity Value Per Share | 64.94 |