Discounted Cash Flow (DCF) Analysis Levered

Howard Bancorp, Inc. (HBMD)

$23.3

0.00 (-%)

All numbers are in Millions, Currency in USD

Stock DCF: 61.85 | 23.3 | undervalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	46.02	53.65	81.30	87.71	84.83	100.25	118.47	140.02	165.47	195.56
Revenue (%)
Operating Cash Flow	2.84	16.90	54.81	20.56	60.67	40.11	47.40	56.02	66.21	78.24
Operating Cash Flow (%)
Capital Expenditure	-0.63	-0.41	-1.94	-1.43	-1.15	-1.50	-1.78	-2.10	-2.48	-2.93
Capital Expenditure (%)
Free Cash Flow	2.21	16.49	52.87	19.13	59.51	38.61	45.62	53.92	63.72	75.31

Weighted Average Cost Of Capital

Share price	$ 23.3
Beta	0.905
Diluted Shares Outstanding	18.77
Cost of Debt
Tax Rate	-27.31
After-tax Cost of Debt	5.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.904
Total Debt	242.70
Total Equity	437.25
Total Capital	679.95
Debt Weighting	35.69
Equity Weighting	64.31
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	46.02	53.65	81.30	87.71	84.83	100.25	118.47	140.02	165.47	195.56
Operating Cash Flow	2.84	16.90	54.81	20.56	60.67	40.11	47.40	56.02	66.21	78.24
Capital Expenditure	-0.63	-0.41	-1.94	-1.43	-1.15	-1.50	-1.78	-2.10	-2.48	-2.93
Free Cash Flow	2.21	16.49	52.87	19.13	59.51	38.61	45.62	53.92	63.72	75.31
WACC
PV LFCF						36.09	39.88	44.06	48.69	53.79
SUM PV LFCF										222.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.96
Free cash flow (t + 1)	76.81
Terminal Value	1,548.67
Present Value of Terminal Value	1,106.24

Intrinsic Value

Enterprise Value	1,328.76
Net Debt	168.09
Equity Value	1,160.68
Shares Outstanding	18.77
Equity Value Per Share	61.85