Discounted Cash Flow (DCF) Analysis Levered

Horizon Bancorp, Inc. (HBNC)

$9.58

-0.27 (-2.74%)

All numbers are in Millions, Currency in USD

Stock DCF: 97.99 | 9.58 | 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	162.64	195.22	219.93	228.26	241.56	267.10	295.35	326.59	361.12	399.32
Revenue (%)
Operating Cash Flow	72.44	174.95	78.76	105.35	94.38	136.33	150.74	166.69	184.31	203.81
Operating Cash Flow (%)
Capital Expenditure	-3.43	-4.61	-5.87	-1.44	-6.43	-5.57	-6.16	-6.81	-7.54	-8.33
Capital Expenditure (%)
Free Cash Flow	69.01	170.34	72.90	103.91	87.95	130.75	144.58	159.87	176.78	195.47

Weighted Average Cost Of Capital

Share price	$ 9.58
Beta	0.873
Diluted Shares Outstanding	43.70
Cost of Debt
Tax Rate	11.53
After-tax Cost of Debt	4.35%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.812
Total Debt	742.25
Total Equity	418.64
Total Capital	1,160.89
Debt Weighting	63.94
Equity Weighting	36.06
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	162.64	195.22	219.93	228.26	241.56	267.10	295.35	326.59	361.12	399.32
Operating Cash Flow	72.44	174.95	78.76	105.35	94.38	136.33	150.74	166.69	184.31	203.81
Capital Expenditure	-3.43	-4.61	-5.87	-1.44	-6.43	-5.57	-6.16	-6.81	-7.54	-8.33
Free Cash Flow	69.01	170.34	72.90	103.91	87.95	130.75	144.58	159.87	176.78	195.47
WACC
PV LFCF						123.82	129.65	135.76	142.16	148.86
SUM PV LFCF										680.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.60
Free cash flow (t + 1)	199.38
Terminal Value	5,538.45
Present Value of Terminal Value	4,217.63

Intrinsic Value

Enterprise Value	4,897.89
Net Debt	615.94
Equity Value	4,281.95
Shares Outstanding	43.70
Equity Value Per Share	97.99