Discounted Cash Flow (DCF) Analysis Levered

Huntington Bancshares Incorporated (HBAN)

$15.335

-0.11 (-0.74%)
All numbers are in Millions, Currency in USD
Stock DCF: 58.42 | 15.335 | 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 4,3074,5104,6674,8155,9916,527.037,111.037,747.288,440.459,195.64
Revenue (%)
Operating Cash Flow 1,9541,7261,5741,3232,0622,340.072,549.442,777.553,026.063,296.81
Operating Cash Flow (%)
Capital Expenditure -194-110-107-119-247-206.65-225.14-245.28-267.23-291.14
Capital Expenditure (%)
Free Cash Flow 1,7601,6161,4671,2041,8152,133.422,324.302,532.262,758.833,005.68

Weighted Average Cost Of Capital

Share price $ 15.335
Beta 1.134
Diluted Shares Outstanding 1,017
Cost of Debt
Tax Rate 18.60
After-tax Cost of Debt 1.02%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.964
Total Debt 7,122
Total Equity 15,595.69
Total Capital 22,717.69
Debt Weighting 31.35
Equity Weighting 68.65
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 4,3074,5104,6674,8155,9916,527.037,111.037,747.288,440.459,195.64
Operating Cash Flow 1,9541,7261,5741,3232,0622,340.072,549.442,777.553,026.063,296.81
Capital Expenditure -194-110-107-119-247-206.65-225.14-245.28-267.23-291.14
Free Cash Flow 1,7601,6161,4671,2041,8152,133.422,324.302,532.262,758.833,005.68
WACC
PV LFCF 1,464.581,498.651,533.531,569.211,605.72
SUM PV LFCF 10,496.07

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.47
Free cash flow (t + 1) 3,065.79
Terminal Value 68,585.87
Present Value of Terminal Value 50,130.08

Intrinsic Value

Enterprise Value 60,626.16
Net Debt 1,208
Equity Value 59,418.16
Shares Outstanding 1,017
Equity Value Per Share 58.42