Discounted Cash Flow (DCF) Analysis Levered

Investors Bancorp, Inc. (ISBC)

$13.87

-0.35 (-2.46%)
All numbers are in Millions, Currency in USD
Stock DCF: 61.02 | 13.87 | 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 715.41690.10708.49793.07835.48869.76905.44942.59981.271,021.53
Revenue (%)
Operating Cash Flow 302.41275.57160.65224.30494.78334.65348.38362.68377.56393.05
Operating Cash Flow (%)
Capital Expenditure -20.23-14.30-17.46-19.84-14.26-20.13-20.96-21.82-22.71-23.65
Capital Expenditure (%)
Free Cash Flow 282.17261.27143.20204.46480.53314.52327.42340.86354.84369.40

Weighted Average Cost Of Capital

Share price $ 13.87
Beta 0.000
Diluted Shares Outstanding 236.44
Cost of Debt
Tax Rate 26.86
After-tax Cost of Debt 3.28%
Risk-Free Rate
Market Risk Premium
Cost of Equity 4.626
Total Debt 3,298.60
Total Equity 3,279.37
Total Capital 6,577.97
Debt Weighting 50.15
Equity Weighting 49.85
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 715.41690.10708.49793.07835.48869.76905.44942.59981.271,021.53
Operating Cash Flow 302.41275.57160.65224.30494.78334.65348.38362.68377.56393.05
Capital Expenditure -20.23-14.30-17.46-19.84-14.26-20.13-20.96-21.82-22.71-23.65
Free Cash Flow 282.17261.27143.20204.46480.53314.52327.42340.86354.84369.40
WACC
PV LFCF 302.57303.01303.46303.91304.35
SUM PV LFCF 1,517.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 3.95
Free cash flow (t + 1) 376.79
Terminal Value 19,322.64
Present Value of Terminal Value 15,920.03

Intrinsic Value

Enterprise Value 17,437.33
Net Debt 3,010.61
Equity Value 14,426.73
Shares Outstanding 236.44
Equity Value Per Share 61.02