Discounted Cash Flow (DCF) Analysis Levered

First Internet Bancorp (INBK)

$16.21

+0.02 (+0.12%)

All numbers are in Millions, Currency in USD

Stock DCF: -15.99 | 16.21 | overvalue

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	70.08	78.61	98.84	114.76	113.91	129.09	146.28	165.76	187.83	212.84
Revenue (%)
Operating Cash Flow	29.36	-43.58	13.07	54.84	82.72	31	35.13	39.81	45.11	51.12
Operating Cash Flow (%)
Capital Expenditure	-2.22	-4.10	-25.56	-29.89	-17.52	-19.54	-22.14	-25.09	-28.43	-32.21
Capital Expenditure (%)
Free Cash Flow	27.14	-47.68	-12.49	24.95	65.21	11.47	12.99	14.72	16.68	18.90

Weighted Average Cost Of Capital

Share price	$ 16.21
Beta	0.637
Diluted Shares Outstanding	9.60
Cost of Debt
Tax Rate	11.37
After-tax Cost of Debt	7.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.579
Total Debt	719.46
Total Equity	155.54
Total Capital	875
Debt Weighting	82.22
Equity Weighting	17.78
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	70.08	78.61	98.84	114.76	113.91	129.09	146.28	165.76	187.83	212.84
Operating Cash Flow	29.36	-43.58	13.07	54.84	82.72	31	35.13	39.81	45.11	51.12
Capital Expenditure	-2.22	-4.10	-25.56	-29.89	-17.52	-19.54	-22.14	-25.09	-28.43	-32.21
Free Cash Flow	27.14	-47.68	-12.49	24.95	65.21	11.47	12.99	14.72	16.68	18.90
WACC
PV LFCF						10.68	11.26	11.88	12.54	13.23
SUM PV LFCF										59.59

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.40
Free cash flow (t + 1)	19.28
Terminal Value	357.08
Present Value of Terminal Value	249.89

Intrinsic Value

Enterprise Value	309.48
Net Debt	462.91
Equity Value	-153.43
Shares Outstanding	9.60
Equity Value Per Share	-15.99