Discounted Cash Flow (DCF) Analysis Levered
Mercantile Bank Corporation (MBWM)
$34.57
+0.13 (+0.38%)
All numbers are in Millions, Currency in USD
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 | 128.75 | 139.09 | 151.49 | 167.42 | 179.22 | 194.69 | 211.49 | 229.73 | 249.56 | 271.09 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 38.66 | 61.74 | 44.77 | 37.88 | 64.57 | 63.32 | 68.78 | 74.72 | 81.17 | 88.17 |
Operating Cash Flow (%) | ||||||||||
Capital Expenditure | -5.42 | -6.32 | -13.48 | -8.99 | -5.60 | -10.18 | -11.06 | -12.02 | -13.05 | -14.18 |
Capital Expenditure (%) | ||||||||||
Free Cash Flow | 33.24 | 55.42 | 31.28 | 28.89 | 58.97 | 53.14 | 57.72 | 62.70 | 68.11 | 73.99 |
Weighted Average Cost Of Capital
Share price | $ 34.57 |
---|---|
Beta | 1.008 |
Diluted Shares Outstanding | 15.70 |
Cost of Debt | |
Tax Rate | 19.93 |
After-tax Cost of Debt | 3.14% |
Risk-Free Rate | |
Market Risk Premium | |
Cost of Equity | 7.553 |
Total Debt | 495.89 |
Total Equity | 542.63 |
Total Capital | 1,038.52 |
Debt Weighting | 47.75 |
Equity Weighting | 52.25 |
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 | 128.75 | 139.09 | 151.49 | 167.42 | 179.22 | 194.69 | 211.49 | 229.73 | 249.56 | 271.09 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 38.66 | 61.74 | 44.77 | 37.88 | 64.57 | 63.32 | 68.78 | 74.72 | 81.17 | 88.17 |
Capital Expenditure | -5.42 | -6.32 | -13.48 | -8.99 | -5.60 | -10.18 | -11.06 | -12.02 | -13.05 | -14.18 |
Free Cash Flow | 33.24 | 55.42 | 31.28 | 28.89 | 58.97 | 53.14 | 57.72 | 62.70 | 68.11 | 73.99 |
WACC | ||||||||||
PV LFCF | 50.39 | 51.91 | 53.48 | 55.09 | 56.75 | |||||
SUM PV LFCF | 267.61 |
Terminal Value
Growth in perpetuity method: | |
---|---|
Long-term growth rate | |
WACC (%) | 5.45 |
Free cash flow (t + 1) | 75.47 |
Terminal Value | 2,187.57 |
Present Value of Terminal Value | 1,677.76 |
Intrinsic Value
Enterprise Value | 1,945.37 |
---|---|
Net Debt | -479.27 |
Equity Value | 2,424.64 |
Shares Outstanding | 15.70 |
Equity Value Per Share | 154.47 |