Discounted Cash Flow (DCF) Analysis Levered

Macatawa Bank Corporation (MCBC)

$9.8

+0.11 (+1.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 10,073.01 | 9.8 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 83.2285.5179.7613.67132.25390.291,151.763,398.9310,030.5029,600.77
Revenue (%)
Operating Cash Flow 29.7230.5835.9234.8043.52315.30930.462,745.878,103.2523,913.30
Operating Cash Flow (%)
Capital Expenditure -1.04-2.27-0.99-0.80-0.44-8.83-26.05-76.88-226.87-669.50
Capital Expenditure (%)
Free Cash Flow 28.6828.3034.933443.08306.47904.412,668.997,876.3923,243.80

Weighted Average Cost Of Capital

Share price $ 9.8
Beta 0.701
Diluted Shares Outstanding 34.36
Cost of Debt
Tax Rate 19.58
After-tax Cost of Debt 3.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.571
Total Debt 30.80
Total Equity 336.74
Total Capital 367.54
Debt Weighting 8.38
Equity Weighting 91.62
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 83.2285.5179.7613.67132.25390.291,151.763,398.9310,030.5029,600.77
Operating Cash Flow 29.7230.5835.9234.8043.52315.30930.462,745.878,103.2523,913.30
Capital Expenditure -1.04-2.27-0.99-0.80-0.44-8.83-26.05-76.88-226.87-669.50
Free Cash Flow 28.6828.3034.933443.08306.47904.412,668.997,876.3923,243.80
WACC
PV LFCF 285.83786.712,165.315,959.6916,403.19
SUM PV LFCF 25,600.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.22
Free cash flow (t + 1) 23,708.68
Terminal Value 454,189.27
Present Value of Terminal Value 320,522.01

Intrinsic Value

Enterprise Value 346,122.74
Net Debt -1.52
Equity Value 346,124.26
Shares Outstanding 34.36
Equity Value Per Share 10,073.01