Discounted Cash Flow (DCF) Analysis Levered

Home Bancshares, Inc. (Conway, AR) (HOMB)

$20.3875

-0.13 (-0.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 52.68 | 20.3875 | 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	544.43	655.34	654.13	684.56	699.78	747.13	797.68	851.65	909.27	970.79
Revenue (%)
Operating Cash Flow	176.91	302.22	247.41	291.73	389.38	320.81	342.51	365.68	390.43	416.84
Operating Cash Flow (%)
Capital Expenditure	-5.19	-7.95	-14.90	-11.55	-10.28	-11.36	-12.13	-12.95	-13.82	-14.76
Capital Expenditure (%)
Free Cash Flow	171.72	294.27	232.52	280.18	379.10	309.45	330.39	352.74	376.60	402.09

Weighted Average Cost Of Capital

Share price	$ 20.3,875
Beta	1.303
Diluted Shares Outstanding	164.31
Cost of Debt
Tax Rate	23.45
After-tax Cost of Debt	5.18%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.998
Total Debt	771.09
Total Equity	3,349.79
Total Capital	4,120.88
Debt Weighting	18.71
Equity Weighting	81.29
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	544.43	655.34	654.13	684.56	699.78	747.13	797.68	851.65	909.27	970.79
Operating Cash Flow	176.91	302.22	247.41	291.73	389.38	320.81	342.51	365.68	390.43	416.84
Capital Expenditure	-5.19	-7.95	-14.90	-11.55	-10.28	-11.36	-12.13	-12.95	-13.82	-14.76
Free Cash Flow	171.72	294.27	232.52	280.18	379.10	309.45	330.39	352.74	376.60	402.09
WACC
PV LFCF						285.79	281.79	277.85	273.96	270.13
SUM PV LFCF										1,389.52

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.28
Free cash flow (t + 1)	410.13
Terminal Value	6,530.68
Present Value of Terminal Value	4,387.50

Intrinsic Value

Enterprise Value	5,777.02
Net Debt	-2,879.22
Equity Value	8,656.24
Shares Outstanding	164.31
Equity Value Per Share	52.68