Discounted Cash Flow (DCF) Analysis Levered

Home Bancorp, Inc. (HBCP)

$37.1

+0.65 (+1.78%)

All numbers are in Millions, Currency in USD

Stock DCF: 221.56 | 37.1 | 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	105.45	100.41	106.52	117.26	131.90	139.77	148.11	156.94	166.31	176.23
Revenue (%)
Operating Cash Flow	47.13	43.94	49.03	55.71	51.20	61.72	65.41	69.31	73.45	77.83
Operating Cash Flow (%)
Capital Expenditure	-5.01	-3.84	-2.15	-2.47	-2.71	-4.12	-4.37	-4.63	-4.91	-5.20
Capital Expenditure (%)
Free Cash Flow	42.12	40.10	46.88	53.24	48.49	57.60	61.04	64.68	68.54	72.63

Weighted Average Cost Of Capital

Share price	$ 37.1
Beta	0.647
Diluted Shares Outstanding	8.43
Cost of Debt
Tax Rate	19.83
After-tax Cost of Debt	3.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.210
Total Debt	390.76
Total Equity	312.69
Total Capital	703.45
Debt Weighting	55.55
Equity Weighting	44.45
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	105.45	100.41	106.52	117.26	131.90	139.77	148.11	156.94	166.31	176.23
Operating Cash Flow	47.13	43.94	49.03	55.71	51.20	61.72	65.41	69.31	73.45	77.83
Capital Expenditure	-5.01	-3.84	-2.15	-2.47	-2.71	-4.12	-4.37	-4.63	-4.91	-5.20
Free Cash Flow	42.12	40.10	46.88	53.24	48.49	57.60	61.04	64.68	68.54	72.63
WACC
PV LFCF						54.83	55.30	55.78	56.26	56.74
SUM PV LFCF										278.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.06
Free cash flow (t + 1)	74.08
Terminal Value	2,420.94
Present Value of Terminal Value	1,891.46

Intrinsic Value

Enterprise Value	2,170.37
Net Debt	303.01
Equity Value	1,867.35
Shares Outstanding	8.43
Equity Value Per Share	221.56