Discounted Cash Flow (DCF) Analysis Levered

Hanmi Financial Corporation (HAFC)

$16.77

-0.30 (-1.76%)

All numbers are in Millions, Currency in USD

Stock DCF: 82.31 | 16.77 | 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	205.53	203.42	222.59	235.18	271.85	291.99	313.63	336.87	361.84	388.65
Revenue (%)
Operating Cash Flow	76.63	58.80	60.20	93.73	147.31	109.37	117.47	126.18	135.53	145.57
Operating Cash Flow (%)
Capital Expenditure	-3.70	-1.58	-4.39	-2.72	-3.88	-4.17	-4.47	-4.81	-5.16	-5.54
Capital Expenditure (%)
Free Cash Flow	72.94	57.22	55.81	91.01	143.43	105.20	113	121.37	130.37	140.03

Weighted Average Cost Of Capital

Share price	$ 16.77
Beta	0.936
Diluted Shares Outstanding	30.39
Cost of Debt
Tax Rate	27.95
After-tax Cost of Debt	5.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.132
Total Debt	479.41
Total Equity	509.67
Total Capital	989.08
Debt Weighting	48.47
Equity Weighting	51.53
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	205.53	203.42	222.59	235.18	271.85	291.99	313.63	336.87	361.84	388.65
Operating Cash Flow	76.63	58.80	60.20	93.73	147.31	109.37	117.47	126.18	135.53	145.57
Capital Expenditure	-3.70	-1.58	-4.39	-2.72	-3.88	-4.17	-4.47	-4.81	-5.16	-5.54
Free Cash Flow	72.94	57.22	55.81	91.01	143.43	105.20	113	121.37	130.37	140.03
WACC
PV LFCF						98.49	99.03	99.58	100.13	100.68
SUM PV LFCF										497.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.82
Free cash flow (t + 1)	142.83
Terminal Value	2,963.26
Present Value of Terminal Value	2,130.63

Intrinsic Value

Enterprise Value	2,628.53
Net Debt	126.99
Equity Value	2,501.54
Shares Outstanding	30.39
Equity Value Per Share	82.31