Discounted Cash Flow (DCF) Analysis Levered

FS Bancorp, Inc. (FSBW)

$30.9

+0.73 (+2.42%)

All numbers are in Millions, Currency in USD

Stock DCF: 222.77 | 30.9 | 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	2028 Projected
Revenue	90.27	127.41	121.36	119.67	133.63	149.23	166.64	186.08	207.79	232.04
Revenue (%)
Operating Cash Flow	9.18	-32.32	109.01	184.90	76.55	85.48	95.46	106.59	119.03	132.92
Operating Cash Flow (%)
Capital Expenditure	-2.46	-1.38	-1.98	-1.55	-2.25	-2.52	-2.81	-3.14	-3.50	-3.91
Capital Expenditure (%)
Free Cash Flow	6.71	-33.70	107.03	183.35	74.30	82.97	92.65	103.46	115.53	129.01

Weighted Average Cost Of Capital

Share price	$ 30.9
Beta	1.019
Diluted Shares Outstanding	8.09
Cost of Debt
Tax Rate	19.84
After-tax Cost of Debt	4.01%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.508
Total Debt	7.65
Total Equity	250.05
Total Capital	257.70
Debt Weighting	2.97
Equity Weighting	97.03
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	2028 Projected
Revenue	90.27	127.41	121.36	119.67	133.63	149.23	166.64	186.08	207.79	232.04
Operating Cash Flow	9.18	-32.32	109.01	184.90	76.55	85.48	95.46	106.59	119.03	132.92
Capital Expenditure	-2.46	-1.38	-1.98	-1.55	-2.25	-2.52	-2.81	-3.14	-3.50	-3.91
Free Cash Flow	6.71	-33.70	107.03	183.35	74.30	82.97	92.65	103.46	115.53	129.01
WACC
PV LFCF					74.30	76.56	78.89	81.29	83.76	86.31
SUM PV LFCF										406.81

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.37
Free cash flow (t + 1)	131.59
Terminal Value	2,065.75
Present Value of Terminal Value	1,382.08

Intrinsic Value

Enterprise Value	1,788.89
Net Debt	-13.83
Equity Value	1,802.72
Shares Outstanding	8.09
Equity Value Per Share	222.77