Discounted Cash Flow (DCF) Analysis Levered

Fifth Third Bancorp (FITB)

$25.95

+1.16 (+4.68%)
All numbers are in Millions, Currency in USD
Stock DCF: 64.94 | 25.95 | undervalue

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 7,2537,3737,6768,1788,513.418,862.579,226.059,604.449,998.35
Revenue (%)
Operating Cash Flow 1,8243712,7046,4283,064.993,190.703,321.563,457.793,599.60
Operating Cash Flow (%)
Capital Expenditure -304-358-309-472-401.07-417.52-434.64-452.47-471.02
Capital Expenditure (%)
Free Cash Flow 1,520132,3955,9562,663.932,773.182,886.923,005.323,128.58

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 7,2537,3737,6768,1788,513.418,862.579,226.059,604.449,998.35
Operating Cash Flow 1,8243712,7046,4283,064.993,190.703,321.563,457.793,599.60
Capital Expenditure -304-358-309-472-401.07-417.52-434.64-452.47-471.02
Free Cash Flow 1,520132,3955,9562,663.932,773.182,886.923,005.323,128.58
WACC
PV LFCF 2,663.932,596.612,5312,467.052,404.71
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