Discounted Cash Flow (DCF) Analysis Levered

HarborOne Bancorp, Inc. (HONE)

$8.65

-0.28 (-3.14%)

All numbers are in Millions, Currency in USD

Stock DCF: 52.91 | 8.65 | 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	131.43	162.73	247.06	224.53	202.53	231.25	264.05	301.49	344.25	393.07
Revenue (%)
Operating Cash Flow	61.17	-36.13	-26.95	224.30	68.90	68.15	77.81	88.85	101.45	115.83
Operating Cash Flow (%)
Capital Expenditure	-5.54	-4.43	-5.74	-6.46	-2.26	-6.13	-7	-8	-9.13	-10.43
Capital Expenditure (%)
Free Cash Flow	55.62	-40.56	-32.69	217.84	66.63	62.01	70.81	80.85	92.31	105.41

Weighted Average Cost Of Capital

Share price	$ 8.65
Beta	0.678
Diluted Shares Outstanding	47.12
Cost of Debt
Tax Rate	26.15
After-tax Cost of Debt	3.89%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.893
Total Debt	434.96
Total Equity	407.57
Total Capital	842.53
Debt Weighting	51.63
Equity Weighting	48.37
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	131.43	162.73	247.06	224.53	202.53	231.25	264.05	301.49	344.25	393.07
Operating Cash Flow	61.17	-36.13	-26.95	224.30	68.90	68.15	77.81	88.85	101.45	115.83
Capital Expenditure	-5.54	-4.43	-5.74	-6.46	-2.26	-6.13	-7	-8	-9.13	-10.43
Free Cash Flow	55.62	-40.56	-32.69	217.84	66.63	62.01	70.81	80.85	92.31	105.41
WACC
PV LFCF						58.87	63.81	69.17	74.97	81.26
SUM PV LFCF										348.08

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.34
Free cash flow (t + 1)	107.51
Terminal Value	3,218.98
Present Value of Terminal Value	2,481.71

Intrinsic Value

Enterprise Value	2,829.79
Net Debt	336.94
Equity Value	2,492.85
Shares Outstanding	47.12
Equity Value Per Share	52.91