Discounted Cash Flow (DCF) Analysis Levered

Hanmi Financial Corporation (HAFC)

$16.23

+0.05 (+0.31%)

All numbers are in Millions, Currency in USD

Stock DCF: 102.01 | 16.23 | 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	224	235.55	271.85	292	313.65	336.90	361.88	388.71
Revenue (%)
Operating Cash Flow	76.63	58.80	60.20	93.73	147.31	109.23	117.33	126.03	135.38	145.41
Operating Cash Flow (%)
Capital Expenditure	-3.70	-1.58	-4.39	-2.72	-1.93	-3.74	-4.01	-4.31	-4.63	-4.98
Capital Expenditure (%)
Free Cash Flow	72.94	57.22	55.81	91.01	145.38	105.50	113.32	121.72	130.74	140.44

Weighted Average Cost Of Capital

Share price	$ 16.23
Beta	0.982
Diluted Shares Outstanding	30.39
Cost of Debt
Tax Rate	27.95
After-tax Cost of Debt	3.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.210
Total Debt	779.41
Total Equity	493.26
Total Capital	1,272.67
Debt Weighting	61.24
Equity Weighting	38.76
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	224	235.55	271.85	292	313.65	336.90	361.88	388.71
Operating Cash Flow	76.63	58.80	60.20	93.73	147.31	109.23	117.33	126.03	135.38	145.41
Capital Expenditure	-3.70	-1.58	-4.39	-2.72	-1.93	-3.74	-4.01	-4.31	-4.63	-4.98
Free Cash Flow	72.94	57.22	55.81	91.01	145.38	105.50	113.32	121.72	130.74	140.44
WACC
PV LFCF						99.88	101.58	103.30	105.06	106.84
SUM PV LFCF										516.67

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.62
Free cash flow (t + 1)	143.24
Terminal Value	3,957.04
Present Value of Terminal Value	3,010.51

Intrinsic Value

Enterprise Value	3,527.18
Net Debt	426.99
Equity Value	3,100.19
Shares Outstanding	30.39
Equity Value Per Share	102.01