Discounted Cash Flow (DCF) Analysis Levered

LendingClub Corporation (LC)

$9.265

-0.07 (-0.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 22.04 | 9.265 | 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 595.44655.20243.51802.421,187.221,854.082,895.514,521.927,061.8911,028.56
Revenue (%)
Operating Cash Flow -638.95-270.64418.03239.8780.60221.52345.94540.26843.721,317.64
Operating Cash Flow (%)
Capital Expenditure -52.98-50.67-31.15-34.41-100.05-156.25-244.02-381.08-595.14-929.43
Capital Expenditure (%)
Free Cash Flow -691.93-321.31386.88205.46-19.4565.26101.92159.18248.58388.21

Weighted Average Cost Of Capital

Share price $ 9.265
Beta 1.945
Diluted Shares Outstanding 108.10
Cost of Debt
Tax Rate -89.29
After-tax Cost of Debt 124.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity 12.932
Total Debt 66.13
Total Equity 1,001.52
Total Capital 1,067.65
Debt Weighting 6.19
Equity Weighting 93.81
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 595.44655.20243.51802.421,187.221,854.082,895.514,521.927,061.8911,028.56
Operating Cash Flow -638.95-270.64418.03239.8780.60221.52345.94540.26843.721,317.64
Capital Expenditure -52.98-50.67-31.15-34.41-100.05-156.25-244.02-381.08-595.14-929.43
Free Cash Flow -691.93-321.31386.88205.46-19.4565.26101.92159.18248.58388.21
WACC
PV LFCF 54.4570.9592.44120.44156.93
SUM PV LFCF 495.20

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 19.86
Free cash flow (t + 1) 395.98
Terminal Value 2,217.12
Present Value of Terminal Value 896.23

Intrinsic Value

Enterprise Value 1,391.43
Net Debt -990.90
Equity Value 2,382.33
Shares Outstanding 108.10
Equity Value Per Share 22.04