Discounted Cash Flow (DCF) Analysis Levered

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

$26.88

+0.98 (+3.78%)

All numbers are in Millions, Currency in USD

Stock DCF: 100.85 | 26.88 | 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	511	531.89	502.65	497.61	551.70	563.36	575.28	587.44	599.86	612.54
Revenue (%)
Operating Cash Flow	296.35	249.65	188.15	251.35	219.27	262.10	267.64	273.30	279.07	284.97
Operating Cash Flow (%)
Capital Expenditure	-19.84	-22.78	-20.57	-15.72	-26.88	-22.86	-23.34	-23.83	-24.34	-24.85
Capital Expenditure (%)
Free Cash Flow	276.51	226.87	167.58	235.62	192.40	239.24	244.30	249.46	254.74	260.12

Weighted Average Cost Of Capital

Share price	$ 26.88
Beta	1.371
Diluted Shares Outstanding	50.58
Cost of Debt
Tax Rate	1.70
After-tax Cost of Debt	4.92%
Risk-Free Rate
Market Risk Premium
Cost of Equity	10.163
Total Debt	172
Total Equity	1,359.70
Total Capital	1,531.70
Debt Weighting	11.23
Equity Weighting	88.77
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	511	531.89	502.65	497.61	551.70	563.36	575.28	587.44	599.86	612.54
Operating Cash Flow	296.35	249.65	188.15	251.35	219.27	262.10	267.64	273.30	279.07	284.97
Capital Expenditure	-19.84	-22.78	-20.57	-15.72	-26.88	-22.86	-23.34	-23.83	-24.34	-24.85
Free Cash Flow	276.51	226.87	167.58	235.62	192.40	239.24	244.30	249.46	254.74	260.12
WACC
PV LFCF						218.34	203.48	189.64	176.73	164.71
SUM PV LFCF										952.91

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.57
Free cash flow (t + 1)	265.32
Terminal Value	3,504.94
Present Value of Terminal Value	2,219.33

Intrinsic Value

Enterprise Value	3,172.24
Net Debt	-1,929
Equity Value	5,101.24
Shares Outstanding	50.58
Equity Value Per Share	100.85