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: 70.73 | 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	715.41	690.10	708.49	816.20	835.48	870.34	906.66	944.49	983.91	1,024.96
Revenue (%)
Operating Cash Flow	302.41	275.57	160.65	224.30	160.85	263.91	274.92	286.39	298.34	310.79
Operating Cash Flow (%)
Capital Expenditure	-20.23	-14.30	-17.46	-19.84	-20.46	-21.32	-22.21	-23.13	-24.10	-25.10
Capital Expenditure (%)
Free Cash Flow	282.17	261.27	143.20	204.46	140.39	242.59	252.72	263.26	274.25	285.69

Weighted Average Cost Of Capital

Share price	$ 13.87
Beta	0.000
Diluted Shares Outstanding	237.42
Cost of Debt
Tax Rate	26.86
After-tax Cost of Debt	2.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity	3.784
Total Debt	3,747.72
Total Equity	3,292.95
Total Capital	7,040.67
Debt Weighting	53.23
Equity Weighting	46.77
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	715.41	690.10	708.49	816.20	835.48	870.34	906.66	944.49	983.91	1,024.96
Operating Cash Flow	302.41	275.57	160.65	224.30	160.85	263.91	274.92	286.39	298.34	310.79
Capital Expenditure	-20.23	-14.30	-17.46	-19.84	-20.46	-21.32	-22.21	-23.13	-24.10	-25.10
Free Cash Flow	282.17	261.27	143.20	204.46	140.39	242.59	252.72	263.26	274.25	285.69
WACC
PV LFCF						234.84	236.83	238.83	240.85	242.88
SUM PV LFCF										1,194.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	3.30
Free cash flow (t + 1)	291.40
Terminal Value	22,415.69
Present Value of Terminal Value	19,056.83

Intrinsic Value

Enterprise Value	20,251.05
Net Debt	3,459.73
Equity Value	16,791.32
Shares Outstanding	237.42
Equity Value Per Share	70.73