Discounted Cash Flow (DCF) Analysis Levered

German American Bancorp, Inc. (GABC)

$37.38

+0.16 (+0.43%)

All numbers are in Millions, Currency in USD

Stock DCF: 115.27 | 37.38 | 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	131.76	151.68	190.73	209.72	220.29	251.05	286.11	326.07	371.60	423.49
Revenue (%)
Operating Cash Flow	54.88	62.33	65.23	92.42	100.84	103.83	118.33	134.85	153.68	175.14
Operating Cash Flow (%)
Capital Expenditure	-11.18	-15.19	-9.37	-7.07	-4.69	-14.52	-16.54	-18.86	-21.49	-24.49
Capital Expenditure (%)
Free Cash Flow	43.69	47.15	55.85	85.35	96.16	89.31	101.78	116	132.20	150.66

Weighted Average Cost Of Capital

Share price	$ 37.38
Beta	0.686
Diluted Shares Outstanding	26.55
Cost of Debt
Tax Rate	18.14
After-tax Cost of Debt	9.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.077
Total Debt	83.86
Total Equity	992.28
Total Capital	1,076.14
Debt Weighting	7.79
Equity Weighting	92.21
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	131.76	151.68	190.73	209.72	220.29	251.05	286.11	326.07	371.60	423.49
Operating Cash Flow	54.88	62.33	65.23	92.42	100.84	103.83	118.33	134.85	153.68	175.14
Capital Expenditure	-11.18	-15.19	-9.37	-7.07	-4.69	-14.52	-16.54	-18.86	-21.49	-24.49
Free Cash Flow	43.69	47.15	55.85	85.35	96.16	89.31	101.78	116	132.20	150.66
WACC
PV LFCF						83.99	90.03	96.49	103.42	110.84
SUM PV LFCF										484.77

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.33
Free cash flow (t + 1)	153.67
Terminal Value	3,548.94
Present Value of Terminal Value	2,611.08

Intrinsic Value

Enterprise Value	3,095.85
Net Debt	35.94
Equity Value	3,059.91
Shares Outstanding	26.55
Equity Value Per Share	115.27