Discounted Cash Flow (DCF) Analysis Levered

First Western Financial, Inc. (MYFW)

$17.02

-0.21 (-1.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 111.86 | 17.02 | 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	57.08	63.91	95.83	95.64	110.24	131.46	156.76	186.93	222.91	265.81
Revenue (%)
Operating Cash Flow	17.80	-21.51	-93.33	165.85	48.28	30.85	36.78	43.86	52.30	62.37
Operating Cash Flow (%)
Capital Expenditure	-0.71	-0.42	-1.20	-2.11	-2.97	-2.12	-2.52	-3.01	-3.59	-4.28
Capital Expenditure (%)
Free Cash Flow	17.09	-21.93	-94.54	163.74	45.31	28.73	34.26	40.85	48.71	58.09

Weighted Average Cost Of Capital

Share price	$ 17.02
Beta	0.679
Diluted Shares Outstanding	9.71
Cost of Debt
Tax Rate	24.73
After-tax Cost of Debt	6.53%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.842
Total Debt	199.02
Total Equity	165.33
Total Capital	364.34
Debt Weighting	54.62
Equity Weighting	45.38
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	57.08	63.91	95.83	95.64	110.24	131.46	156.76	186.93	222.91	265.81
Operating Cash Flow	17.80	-21.51	-93.33	165.85	48.28	30.85	36.78	43.86	52.30	62.37
Capital Expenditure	-0.71	-0.42	-1.20	-2.11	-2.97	-2.12	-2.52	-3.01	-3.59	-4.28
Free Cash Flow	17.09	-21.93	-94.54	163.74	45.31	28.73	34.26	40.85	48.71	58.09
WACC
PV LFCF						23.67	26.46	29.58	33.07	36.97
SUM PV LFCF										170.39

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.67
Free cash flow (t + 1)	59.25
Terminal Value	1,268.77
Present Value of Terminal Value	918.70

Intrinsic Value

Enterprise Value	1,089.09
Net Debt	2.51
Equity Value	1,086.58
Shares Outstanding	9.71
Equity Value Per Share	111.86