Discounted Cash Flow (DCF) Analysis Levered

First Internet Bancorp (INBK)

$34.19

-0.62 (-1.78%)
All numbers are in Millions, Currency in USD
Stock DCF: 3.94 | 34.19 | overvalue

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 63.5070.0978.6198.84114.76133.24154.69179.58208.49242.05
Revenue (%)
Operating Cash Flow 24.6229.36-43.5813.0754.8422.9826.6830.9835.9641.75
Operating Cash Flow (%)
Capital Expenditure -1.52-2.22-4.10-25.56-29.89-16.70-19.39-22.51-26.14-30.34
Capital Expenditure (%)
Free Cash Flow 23.1127.14-47.68-12.4924.956.287.298.469.8211.40

Weighted Average Cost Of Capital

Share price $ 34.19
Beta 0.638
Diluted Shares Outstanding 9.98
Cost of Debt
Tax Rate 14.95
After-tax Cost of Debt 6.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.974
Total Debt 619.15
Total Equity 341.09
Total Capital 960.24
Debt Weighting 64.48
Equity Weighting 35.52
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 63.5070.0978.6198.84114.76133.24154.69179.58208.49242.05
Operating Cash Flow 24.6229.36-43.5813.0754.8422.9826.6830.9835.9641.75
Capital Expenditure -1.52-2.22-4.10-25.56-29.89-16.70-19.39-22.51-26.14-30.34
Free Cash Flow 23.1127.14-47.68-12.4924.956.287.298.469.8211.40
WACC
PV LFCF 5.896.416.977.598.26
SUM PV LFCF 35.11

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.67
Free cash flow (t + 1) 11.63
Terminal Value 249.10
Present Value of Terminal Value 180.37

Intrinsic Value

Enterprise Value 215.48
Net Debt 176.19
Equity Value 39.29
Shares Outstanding 9.98
Equity Value Per Share 3.94