Discounted Cash Flow (DCF) Analysis Levered

Fifth Third Bancorp (FITB)

$39.11

+0.50 (+1.30%)
All numbers are in Millions, Currency in USD
Stock DCF: 53.35 | 39.11 | 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 5,7296,1517,2537,3737,6468,231.668,862.199,541.0110,271.8311,058.63
Revenue (%)
Operating Cash Flow 1,4942,8561,8243712,7042,272.832,446.932,634.362,836.143,053.38
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 1,2632,7221,520132,3951,955.112,104.872,266.092,439.672,626.54

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 5,7296,1517,2537,3737,6468,231.668,862.199,541.0110,271.8311,058.63
Operating Cash Flow 1,4942,8561,8243712,7042,272.832,446.932,634.362,836.143,053.38
Capital Expenditure -231-134-304-358-309-317.72-342.06-368.26-396.47-426.84
Free Cash Flow 1,2632,7221,520132,3951,955.112,104.872,266.092,439.672,626.54
WACC
PV LFCF 1,824.651,833.331,842.051,850.811,859.62
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