Discounted Cash Flow (DCF) Analysis Levered

Independent Bank Group, Inc. (IBTX)

$38.57

-1.16 (-2.92%)

All numbers are in Millions, Currency in USD

Stock DCF: 80.30 | 38.57 | 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	368.35	580.65	601.14	587.14	610.17	705.90	816.65	944.77	1,092.99	1,264.47
Revenue (%)
Operating Cash Flow	158.74	173.32	154.30	277.43	217.23	256.19	296.38	342.88	396.68	458.91
Operating Cash Flow (%)
Capital Expenditure	-38.11	-31.68	-21.14	-71.36	-62.96	-59	-68.25	-78.96	-91.35	-105.68
Capital Expenditure (%)
Free Cash Flow	120.63	141.64	133.16	206.08	154.27	197.19	228.13	263.92	305.33	353.23

Weighted Average Cost Of Capital

Share price	$ 38.57
Beta	1.365
Diluted Shares Outstanding	43.10
Cost of Debt
Tax Rate	20.30
After-tax Cost of Debt	12.42%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.182
Total Debt	621.49
Total Equity	1,662.52
Total Capital	2,284.01
Debt Weighting	27.21
Equity Weighting	72.79
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	368.35	580.65	601.14	587.14	610.17	705.90	816.65	944.77	1,092.99	1,264.47
Operating Cash Flow	158.74	173.32	154.30	277.43	217.23	256.19	296.38	342.88	396.68	458.91
Capital Expenditure	-38.11	-31.68	-21.14	-71.36	-62.96	-59	-68.25	-78.96	-91.35	-105.68
Free Cash Flow	120.63	141.64	133.16	206.08	154.27	197.19	228.13	263.92	305.33	353.23
WACC
PV LFCF						177.99	185.86	194.08	202.66	211.62
SUM PV LFCF										972.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	10.79
Free cash flow (t + 1)	360.30
Terminal Value	4,098.93
Present Value of Terminal Value	2,455.66

Intrinsic Value

Enterprise Value	3,427.86
Net Debt	-33.33
Equity Value	3,461.19
Shares Outstanding	43.10
Equity Value Per Share	80.30