Discounted Cash Flow (DCF) Analysis Levered

First Republic Bank (FRC)

$142.29

-1.82 (-1.26%)
All numbers are in Millions, Currency in USD
Stock DCF: 301.10 | 142.29 | 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 2,553.152,967.473,253.993,853.324,9605,865.476,936.248,202.489,699.8811,470.63
Revenue (%)
Operating Cash Flow 1,012.141,111.20938.51531.261,2041,689.161,997.532,362.192,793.413,303.36
Operating Cash Flow (%)
Capital Expenditure -166.71-133.87-167.94-148.67-198-282.15-333.66-394.57-466.60-551.78
Capital Expenditure (%)
Free Cash Flow 845.43977.33770.57382.601,0061,407.011,663.871,967.612,326.812,751.58

Weighted Average Cost Of Capital

Share price $ 142.29
Beta 1.109
Diluted Shares Outstanding 180
Cost of Debt
Tax Rate 19.15
After-tax Cost of Debt 3.19%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.030
Total Debt 6,882
Total Equity 25,612.20
Total Capital 32,494.20
Debt Weighting 21.18
Equity Weighting 78.82
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 2,553.152,967.473,253.993,853.324,9605,865.476,936.248,202.489,699.8811,470.63
Operating Cash Flow 1,012.141,111.20938.51531.261,2041,689.161,997.532,362.192,793.413,303.36
Capital Expenditure -166.71-133.87-167.94-148.67-198-282.15-333.66-394.57-466.60-551.78
Free Cash Flow 845.43977.33770.57382.601,0061,407.011,663.871,967.612,326.812,751.58
WACC
PV LFCF 1,314.961,453.291,606.161,775.111,961.84
SUM PV LFCF 8,111.36

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.00
Free cash flow (t + 1) 2,806.61
Terminal Value 56,132.21
Present Value of Terminal Value 40,021.49

Intrinsic Value

Enterprise Value 48,132.85
Net Debt -6,065
Equity Value 54,197.85
Shares Outstanding 180
Equity Value Per Share 301.10