Discounted Cash Flow (DCF) Analysis Levered

Merchants Bancorp (MBIN)

$41.59

+0.31 (+0.75%)
All numbers are in Millions, Currency in USD
Stock DCF: -610.12 | 41.59 | overvalue

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 134.93165.45339.78430.31427.19591.57819.181,134.391,570.872,175.30
Revenue (%)
Operating Cash Flow 203.59-1,257-874.89-49.22975.77-768.30-1,063.92-1,473.30-2,040.18-2,825.20
Operating Cash Flow (%)
Capital Expenditure -15.51-13.98-3.62-3.65-8.82-28.30-39.19-54.28-75.16-104.08
Capital Expenditure (%)
Free Cash Flow 188.08-1,270.99-878.51-52.86966.96-796.60-1,103.12-1,527.57-2,115.34-2,929.28

Weighted Average Cost Of Capital

Share price $ 41.59
Beta 1.213
Diluted Shares Outstanding 43.32
Cost of Debt
Tax Rate 24.53
After-tax Cost of Debt 12.75%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.010
Total Debt 960.39
Total Equity 1,801.55
Total Capital 2,761.94
Debt Weighting 34.77
Equity Weighting 65.23
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 134.93165.45339.78430.31427.19591.57819.181,134.391,570.872,175.30
Operating Cash Flow 203.59-1,257-874.89-49.22975.77-768.30-1,063.92-1,473.30-2,040.18-2,825.20
Capital Expenditure -15.51-13.98-3.62-3.65-8.82-28.30-39.19-54.28-75.16-104.08
Free Cash Flow 188.08-1,270.99-878.51-52.86966.96-796.60-1,103.12-1,527.57-2,115.34-2,929.28
WACC
PV LFCF -426.82-532.67-664.77-829.63-1,035.37
SUM PV LFCF -5,869.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.96
Free cash flow (t + 1) -2,987.86
Terminal Value -33,346.68
Present Value of Terminal Value -19,825.33

Intrinsic Value

Enterprise Value -25,694.34
Net Debt 734.23
Equity Value -26,428.56
Shares Outstanding 43.32
Equity Value Per Share -610.12