Discounted Cash Flow (DCF) Analysis Levered

Heartland Financial USA, Inc. (HTLF)

$29.38

+0.08 (+0.27%)
All numbers are in Millions, Currency in USD
Stock DCF: 118.20 | 29.38 | 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 520.91569.36606.92688.91727.55791.24860.50935.831,017.761,106.85
Revenue (%)
Operating Cash Flow 242.75161.17190.37326.04388.01327.47356.13387.31421.22458.09
Operating Cash Flow (%)
Capital Expenditure -12.74-17.93-18.54-17.20-14.80-20.86-22.69-24.67-26.83-29.18
Capital Expenditure (%)
Free Cash Flow 230.01143.25171.83308.83373.20306.61333.45362.64394.38428.91

Weighted Average Cost Of Capital

Share price $ 29.38
Beta 1.062
Diluted Shares Outstanding 42.63
Cost of Debt
Tax Rate 20.76
After-tax Cost of Debt 8.10%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.611
Total Debt 747.87
Total Equity 1,252.50
Total Capital 2,000.37
Debt Weighting 37.39
Equity Weighting 62.61
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 520.91569.36606.92688.91727.55791.24860.50935.831,017.761,106.85
Operating Cash Flow 242.75161.17190.37326.04388.01327.47356.13387.31421.22458.09
Capital Expenditure -12.74-17.93-18.54-17.20-14.80-20.86-22.69-24.67-26.83-29.18
Free Cash Flow 230.01143.25171.83308.83373.20306.61333.45362.64394.38428.91
WACC
PV LFCF 281.16280.40279.64278.88278.12
SUM PV LFCF 1,398.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.05
Free cash flow (t + 1) 437.49
Terminal Value 6,205.48
Present Value of Terminal Value 4,023.90

Intrinsic Value

Enterprise Value 5,422.10
Net Debt 383.04
Equity Value 5,039.05
Shares Outstanding 42.63
Equity Value Per Share 118.20