Discounted Cash Flow (DCF) Analysis Levered

Investar Holding Corporation (ISTR)

$11.47

-0.15 (-1.29%)

All numbers are in Millions, Currency in USD

Stock DCF: 171.56 | 11.47 | undervalue

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	61.59	71.04	85.67	96.26	108.39	124.90	143.91	165.82	191.07	220.16
Revenue (%)
Operating Cash Flow	16.41	18.57	17.75	33.48	42.75	36.90	42.52	48.99	56.45	65.04
Operating Cash Flow (%)
Capital Expenditure	-4.94	-7.92	-7.59	-3.32	-1.06	-8.10	-9.34	-10.76	-12.40	-14.28
Capital Expenditure (%)
Free Cash Flow	11.48	10.65	10.16	30.16	41.69	28.80	33.18	38.23	44.05	50.76

Weighted Average Cost Of Capital

Share price	$ 11.47
Beta	0.648
Diluted Shares Outstanding	10.18
Cost of Debt
Tax Rate	19.48
After-tax Cost of Debt	3.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.196
Total Debt	439.74
Total Equity	116.77
Total Capital	556.51
Debt Weighting	79.02
Equity Weighting	20.98
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	61.59	71.04	85.67	96.26	108.39	124.90	143.91	165.82	191.07	220.16
Operating Cash Flow	16.41	18.57	17.75	33.48	42.75	36.90	42.52	48.99	56.45	65.04
Capital Expenditure	-4.94	-7.92	-7.59	-3.32	-1.06	-8.10	-9.34	-10.76	-12.40	-14.28
Free Cash Flow	11.48	10.65	10.16	30.16	41.69	28.80	33.18	38.23	44.05	50.76
WACC
PV LFCF						22.57	24.98	27.64	30.58	33.83
SUM PV LFCF										170.99

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.14
Free cash flow (t + 1)	51.78
Terminal Value	2,419.41
Present Value of Terminal Value	1,975.25

Intrinsic Value

Enterprise Value	2,146.24
Net Debt	399.67
Equity Value	1,746.57
Shares Outstanding	10.18
Equity Value Per Share	171.56