Discounted Cash Flow (DCF) Analysis Levered

The Bank of N.T. Butterfield & Son ... (NTB)

$31.19

+0.55 (+1.80%)
All numbers are in Millions, Currency in USD
Stock DCF: 92.87 | 31.19 | undervalue

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 448.79511531.89502.65497.61511.86526.51541.58557.08573.03
Revenue (%)
Operating Cash Flow 193.36296.35249.65188.15251.35241.55248.46255.58262.89270.42
Operating Cash Flow (%)
Capital Expenditure -14.78-19.84-22.78-20.57-15.72-19.15-19.70-20.26-20.84-21.44
Capital Expenditure (%)
Free Cash Flow 178.58276.51226.87167.58235.62222.40228.76235.31242.05248.98

Weighted Average Cost Of Capital

Share price $ 31.19
Beta 1.392
Diluted Shares Outstanding 50.58
Cost of Debt
Tax Rate 1.88
After-tax Cost of Debt 14.32%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.088
Total Debt 171.88
Total Equity 1,577.72
Total Capital 1,749.60
Debt Weighting 9.82
Equity Weighting 90.18
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 448.79511531.89502.65497.61511.86526.51541.58557.08573.03
Operating Cash Flow 193.36296.35249.65188.15251.35241.55248.46255.58262.89270.42
Capital Expenditure -14.78-19.84-22.78-20.57-15.72-19.15-19.70-20.26-20.84-21.44
Free Cash Flow 178.58276.51226.87167.58235.62222.40228.76235.31242.05248.98
WACC
PV LFCF 201.27187.35174.40162.35151.13
SUM PV LFCF 876.50

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 10.50
Free cash flow (t + 1) 253.96
Terminal Value 2,987.71
Present Value of Terminal Value 1,813.54

Intrinsic Value

Enterprise Value 2,690.04
Net Debt -2,007.96
Equity Value 4,698
Shares Outstanding 50.58
Equity Value Per Share 92.87