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	7,253	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