Discounted Cash Flow (DCF) Analysis Levered

Independent Bank Corp. (INDB)

$79.08

+0.62 (+0.79%)

All numbers are in Millions, Currency in USD

Stock DCF: 198.16 | 79.08 | undervalue

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	338.41	383.24	502.75	477.45	507.41	565.35	629.90	701.83	781.97	871.26
Revenue (%)
Operating Cash Flow	130.91	141.84	216.52	64.64	190.22	191.98	213.90	238.32	265.54	295.86
Operating Cash Flow (%)
Capital Expenditure	-25.08	-11.11	-16.58	-12.59	-25.20	-23.98	-26.72	-29.77	-33.17	-36.96
Capital Expenditure (%)
Free Cash Flow	105.83	130.73	199.94	52.05	165.02	168	187.18	208.55	232.37	258.90

Weighted Average Cost Of Capital

Share price	$ 79.08
Beta	0.863
Diluted Shares Outstanding	32.96
Cost of Debt
Tax Rate	22.78
After-tax Cost of Debt	6.95%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.200
Total Debt	152.37
Total Equity	2,606.80
Total Capital	2,759.17
Debt Weighting	5.52
Equity Weighting	94.48
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	338.41	383.24	502.75	477.45	507.41	565.35	629.90	701.83	781.97	871.26
Operating Cash Flow	130.91	141.84	216.52	64.64	190.22	191.98	213.90	238.32	265.54	295.86
Capital Expenditure	-25.08	-11.11	-16.58	-12.59	-25.20	-23.98	-26.72	-29.77	-33.17	-36.96
Free Cash Flow	105.83	130.73	199.94	52.05	165.02	168	187.18	208.55	232.37	258.90
WACC
PV LFCF						156.73	162.91	169.34	176.02	182.96
SUM PV LFCF										847.95

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.19
Free cash flow (t + 1)	264.08
Terminal Value	5,088.17
Present Value of Terminal Value	3,595.76

Intrinsic Value

Enterprise Value	4,443.71
Net Debt	-2,088.31
Equity Value	6,532.02
Shares Outstanding	32.96
Equity Value Per Share	198.16