Discounted Cash Flow (DCF) Analysis Levered

Lakeland Financial Corporation (LKFN)

$77.64

-0.54 (-0.69%)

All numbers are in Millions, Currency in USD

Stock DCF: 111.53 | 77.64 | 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	163.67	181.70	189.64	197.99	210.13	223.75	238.25	253.70	270.14	287.64
Revenue (%)
Operating Cash Flow	77.24	104.98	100.04	87.23	113.77	114.53	121.95	129.85	138.27	147.23
Operating Cash Flow (%)
Capital Expenditure	-9.58	-7.97	-8	-5.72	-6.17	-9.08	-9.66	-10.29	-10.96	-11.67
Capital Expenditure (%)
Free Cash Flow	67.66	97.01	92.04	81.51	107.60	105.45	112.28	119.56	127.31	135.56

Weighted Average Cost Of Capital

Share price	$ 77.64
Beta	0.765
Diluted Shares Outstanding	25.62
Cost of Debt
Tax Rate	18.49
After-tax Cost of Debt	16.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.118
Total Debt	75
Total Equity	1,989.14
Total Capital	2,064.14
Debt Weighting	3.63
Equity Weighting	96.37
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	163.67	181.70	189.64	197.99	210.13	223.75	238.25	253.70	270.14	287.64
Operating Cash Flow	77.24	104.98	100.04	87.23	113.77	114.53	121.95	129.85	138.27	147.23
Capital Expenditure	-9.58	-7.97	-8	-5.72	-6.17	-9.08	-9.66	-10.29	-10.96	-11.67
Free Cash Flow	67.66	97.01	92.04	81.51	107.60	105.45	112.28	119.56	127.31	135.56
WACC
PV LFCF						98.13	97.24	96.35	95.47	94.60
SUM PV LFCF										481.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.46
Free cash flow (t + 1)	138.27
Terminal Value	2,532.46
Present Value of Terminal Value	1,767.29

Intrinsic Value

Enterprise Value	2,249.08
Net Debt	-608.24
Equity Value	2,857.32
Shares Outstanding	25.62
Equity Value Per Share	111.53