Discounted Cash Flow (DCF) Analysis Levered

LCNB Corp. (LCNB)

$15.28

-0.08 (-0.52%)

All numbers are in Millions, Currency in USD

Stock DCF: 32.87 | 15.28 | 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	49.49	57.09	64.31	69.11	69.51	75.77	82.60	90.04	98.15	106.99
Revenue (%)
Operating Cash Flow	18.14	19.74	21.97	13.68	14.88	22.21	24.21	26.39	28.77	31.36
Operating Cash Flow (%)
Capital Expenditure	-6.62	-0.60	-3.93	-2.79	-4.27	-4.66	-5.07	-5.53	-6.03	-6.57
Capital Expenditure (%)
Free Cash Flow	11.52	19.14	18.03	10.89	10.61	17.56	19.14	20.86	22.74	24.79

Weighted Average Cost Of Capital

Share price	$ 15.28
Beta	0.766
Diluted Shares Outstanding	12.37
Cost of Debt
Tax Rate	18.02
After-tax Cost of Debt	20.17%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.380
Total Debt	16.47
Total Equity	189.02
Total Capital	205.50
Debt Weighting	8.02
Equity Weighting	91.98
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	49.49	57.09	64.31	69.11	69.51	75.77	82.60	90.04	98.15	106.99
Operating Cash Flow	18.14	19.74	21.97	13.68	14.88	22.21	24.21	26.39	28.77	31.36
Capital Expenditure	-6.62	-0.60	-3.93	-2.79	-4.27	-4.66	-5.07	-5.53	-6.03	-6.57
Free Cash Flow	11.52	19.14	18.03	10.89	10.61	17.56	19.14	20.86	22.74	24.79
WACC
PV LFCF						11.38	11.54	11.71	11.87	12.04
SUM PV LFCF										84.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.49
Free cash flow (t + 1)	25.29
Terminal Value	460.60
Present Value of Terminal Value	320.98

Intrinsic Value

Enterprise Value	404.99
Net Debt	-1.66
Equity Value	406.65
Shares Outstanding	12.37
Equity Value Per Share	32.87