Discounted Cash Flow (DCF) Analysis Levered

First Mid Bancshares, Inc. (FMBH)

$24.02

-0.80 (-3.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 181.05 | 24.02 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	144.18	178.20	184.64	234.40	254.66	294.64	340.90	394.42	456.35	528
Revenue (%)
Operating Cash Flow	42.17	62.83	63.54	69.60	65.82	91.02	105.31	121.85	140.98	163.11
Operating Cash Flow (%)
Capital Expenditure	-3.11	-4.10	-2.46	-3.70	-5.02	-5.51	-6.37	-7.37	-8.53	-9.87
Capital Expenditure (%)
Free Cash Flow	39.06	58.73	61.08	65.89	60.80	85.51	98.94	114.47	132.45	153.24

Weighted Average Cost Of Capital

Share price	$ 24.02
Beta	0.829
Diluted Shares Outstanding	18.14
Cost of Debt
Tax Rate	20.09
After-tax Cost of Debt	4.24%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.604
Total Debt	595.02
Total Equity	435.61
Total Capital	1,030.63
Debt Weighting	57.73
Equity Weighting	42.27
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	144.18	178.20	184.64	234.40	254.66	294.64	340.90	394.42	456.35	528
Operating Cash Flow	42.17	62.83	63.54	69.60	65.82	91.02	105.31	121.85	140.98	163.11
Capital Expenditure	-3.11	-4.10	-2.46	-3.70	-5.02	-5.51	-6.37	-7.37	-8.53	-9.87
Free Cash Flow	39.06	58.73	61.08	65.89	60.80	85.51	98.94	114.47	132.45	153.24
WACC
PV LFCF						80.93	88.62	97.04	106.27	116.36
SUM PV LFCF										489.23

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.66
Free cash flow (t + 1)	156.31
Terminal Value	4,270.63
Present Value of Terminal Value	3,242.94

Intrinsic Value

Enterprise Value	3,732.17
Net Debt	448.75
Equity Value	3,283.43
Shares Outstanding	18.14
Equity Value Per Share	181.05