Discounted Cash Flow (DCF) Analysis Levered

Medallion Financial Corp. (MFIN)

$7.01

+0.46 (+7.02%)

All numbers are in Millions, Currency in USD

Stock DCF: 77.20 | 7.01 | undervalue

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	88.81	106.25	117.21	148.07	156.93	181.37	209.60	242.23	279.94	323.52
Revenue (%)
Operating Cash Flow	78.14	64.93	78.71	78.73	108.74	122.86	141.99	164.10	189.64	219.17
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	122.86	141.99	164.10	189.64	219.17

Weighted Average Cost Of Capital

Share price	$ 7.01
Beta	1.985
Diluted Shares Outstanding	23.93
Cost of Debt
Tax Rate	35.39
After-tax Cost of Debt	10.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity	13.061
Total Debt	227.72
Total Equity	167.73
Total Capital	395.45
Debt Weighting	57.58
Equity Weighting	42.42
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	88.81	106.25	117.21	148.07	156.93	181.37	209.60	242.23	279.94	323.52
Operating Cash Flow	78.14	64.93	78.71	78.73	108.74	122.86	141.99	164.10	189.64	219.17
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	122.86	141.99	164.10	189.64	219.17
WACC
PV LFCF						110.24	114.31	118.54	122.92	127.46
SUM PV LFCF										593.47

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.45
Free cash flow (t + 1)	223.55
Terminal Value	2,365.61
Present Value of Terminal Value	1,375.76

Intrinsic Value

Enterprise Value	1,969.23
Net Debt	122.12
Equity Value	1,847.11
Shares Outstanding	23.93
Equity Value Per Share	77.20