Discounted Cash Flow (DCF) Analysis Levered

Fifth Third Bancorp (FITBI)

$25.05

+0.15 (+0.60%)

All numbers are in Millions, Currency in USD

Stock DCF: 28.50 | 25.05 | 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	7,646	8,295	8,677.82	9,078.31	9,497.28	9,935.59	10,394.13
Revenue (%)
Operating Cash Flow	1,824	371	2,704	1,812.32	1,895.96	1,983.46	2,075	2,170.76	2,270.94
Operating Cash Flow (%)
Capital Expenditure	-304	-358	-309	-361.89	-378.59	-396.06	-414.34	-433.47	-453.47
Capital Expenditure (%)
Free Cash Flow	1,520	13	2,395	1,450.43	1,517.37	1,587.40	1,660.66	1,737.30	1,817.47

Weighted Average Cost Of Capital

Share price	$ 25.05
Beta	1.191
Diluted Shares Outstanding	714
Cost of Debt
Tax Rate	20.92
After-tax Cost of Debt	4.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.314
Total Debt	18,552
Total Equity	17,885.70
Total Capital	36,437.70
Debt Weighting	50.91
Equity Weighting	49.09
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	7,646	8,295	8,677.82	9,078.31	9,497.28	9,935.59	10,394.13
Operating Cash Flow	1,824	371	2,704	1,812.32	1,895.96	1,983.46	2,075	2,170.76	2,270.94
Capital Expenditure	-304	-358	-309	-361.89	-378.59	-396.06	-414.34	-433.47	-453.47
Free Cash Flow	1,520	13	2,395	1,450.43	1,517.37	1,587.40	1,660.66	1,737.30	1,817.47
WACC
PV LFCF					1,517.37	1,487.86	1,458.92	1,430.55	1,402.73
SUM PV LFCF									6,839.84

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.69
Free cash flow (t + 1)	1,853.82
Terminal Value	39,527.15
Present Value of Terminal Value	28,594.13

Intrinsic Value

Enterprise Value	35,433.97
Net Debt	15,086
Equity Value	20,347.97
Shares Outstanding	714
Equity Value Per Share	28.50