Discounted Cash Flow (DCF) Analysis Levered

Franklin Financial Services Corpora... (FRAF)

$31.19

+0.31 (+1.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 46.51 | 31.19 | 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	52.28	56.52	55.96	60.26	56.45	57.64	58.87	60.11	61.38	62.68
Revenue (%)
Operating Cash Flow	9.30	18.97	6.44	26.35	25.24	17.44	17.81	18.19	18.57	18.97
Operating Cash Flow (%)
Capital Expenditure	-1.16	-1.65	-0.48	-8.81	-12.22	-4.87	-4.98	-5.08	-5.19	-5.30
Capital Expenditure (%)
Free Cash Flow	8.14	17.31	5.95	17.54	13.03	12.57	12.84	13.11	13.38	13.67

Weighted Average Cost Of Capital

Share price	$ 31.19
Beta	0.517
Diluted Shares Outstanding	4.36
Cost of Debt
Tax Rate	14.62
After-tax Cost of Debt	67.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.940
Total Debt	6.14
Total Equity	135.89
Total Capital	142.04
Debt Weighting	4.33
Equity Weighting	95.67
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	52.28	56.52	55.96	60.26	56.45	57.64	58.87	60.11	61.38	62.68
Operating Cash Flow	9.30	18.97	6.44	26.35	25.24	17.44	17.81	18.19	18.57	18.97
Capital Expenditure	-1.16	-1.65	-0.48	-8.81	-12.22	-4.87	-4.98	-5.08	-5.19	-5.30
Free Cash Flow	8.14	17.31	5.95	17.54	13.03	12.57	12.84	13.11	13.38	13.67
WACC
PV LFCF						11.57	10.88	10.23	9.62	9.04
SUM PV LFCF										51.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.61
Free cash flow (t + 1)	13.94
Terminal Value	210.91
Present Value of Terminal Value	139.56

Intrinsic Value

Enterprise Value	190.90
Net Debt	-11.74
Equity Value	202.64
Shares Outstanding	4.36
Equity Value Per Share	46.51