Discounted Cash Flow (DCF) Analysis Levered
Fifth Third Bancorp (FITB)
$39.11
+0.50 (+1.30%)
All numbers are in Millions, Currency in USD
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 | 5,729 | 6,151 | 7,253 | 7,373 | 7,646 | 8,231.66 | 8,862.19 | 9,541.01 | 10,271.83 | 11,058.63 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 1,494 | 2,856 | 1,824 | 371 | 2,704 | 2,272.83 | 2,446.93 | 2,634.36 | 2,836.14 | 3,053.38 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -231 | -134 | -304 | -358 | -309 | -317.72 | -342.06 | -368.26 | -396.47 | -426.84 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 1,263 | 2,722 | 1,520 | 13 | 2,395 | 1,955.11 | 2,104.87 | 2,266.09 | 2,439.67 | 2,626.54 |
Weighted Average Cost Of Capital
Share price | $ 39.11 |
---|---|
Beta | 1.321 |
Diluted Shares Outstanding | 697.53 |
Cost of Debt | |
Tax Rate | 21.24 |
After-tax Cost of Debt | 2.94% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 8.980 |
Total Debt | 11,821 |
Total Equity | 27,280.48 |
Total Capital | 39,101.48 |
Debt Weighting | 30.23 |
Equity Weighting | 69.77 |
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 | 5,729 | 6,151 | 7,253 | 7,373 | 7,646 | 8,231.66 | 8,862.19 | 9,541.01 | 10,271.83 | 11,058.63 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 1,494 | 2,856 | 1,824 | 371 | 2,704 | 2,272.83 | 2,446.93 | 2,634.36 | 2,836.14 | 3,053.38 |
Capital Expenditure | -231 | -134 | -304 | -358 | -309 | -317.72 | -342.06 | -368.26 | -396.47 | -426.84 |
Free Cash Flow | 1,263 | 2,722 | 1,520 | 13 | 2,395 | 1,955.11 | 2,104.87 | 2,266.09 | 2,439.67 | 2,626.54 |
WACC | ||||||||||
PV LFCF | 1,824.65 | 1,833.33 | 1,842.05 | 1,850.81 | 1,859.62 | |||||
SUM PV LFCF | 9,210.46 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 7.15 |
Free cash flow (t + 1) | 2,679.07 |
Terminal Value | 52,020.87 |
Present Value of Terminal Value | 36,831.27 |
Intrinsic Value
Enterprise Value | 46,041.73 |
---|---|
Net Debt | 8,827 |
Equity Value | 37,214.73 |
Shares Outstanding | 697.53 |
Equity Value Per Share | 53.35 |