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	448.79	511	531.89	502.65	497.61	511.86	526.51	541.58	557.08	573.03
Revenue (%)
Operating Cash Flow	193.36	296.35	249.65	188.15	251.35	241.55	248.46	255.58	262.89	270.42
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	178.58	276.51	226.87	167.58	235.62	222.40	228.76	235.31	242.05	248.98

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	448.79	511	531.89	502.65	497.61	511.86	526.51	541.58	557.08	573.03
Operating Cash Flow	193.36	296.35	249.65	188.15	251.35	241.55	248.46	255.58	262.89	270.42
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	178.58	276.51	226.87	167.58	235.62	222.40	228.76	235.31	242.05	248.98
WACC
PV LFCF						201.27	187.35	174.40	162.35	151.13
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