Discounted Cash Flow (DCF) Analysis Levered

Northwest Bancshares, Inc. (NWBI)

$13.51

-0.24 (-1.75%)
All numbers are in Millions, Currency in USD
Stock DCF: 39.91 | 13.51 | 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 438.42428.13457.31520.72506.89526.76547.41568.87591.17614.34
Revenue (%)
Operating Cash Flow 156.06138.91127.46140.43205.46172.16178.91185.92193.21200.79
Operating Cash Flow (%)
Capital Expenditure -3.72-5.23-10.90-12.25-17.52-10.81-11.24-11.68-12.13-12.61
Capital Expenditure (%)
Free Cash Flow 152.34133.68116.56128.18187.94161.35167.67174.25181.08188.18

Weighted Average Cost Of Capital

Share price $ 13.51
Beta 0.551
Diluted Shares Outstanding 125.23
Cost of Debt
Tax Rate 23.27
After-tax Cost of Debt 5.34%
Risk-Free Rate
Market Risk Premium
Cost of Equity 6.403
Total Debt 391.72
Total Equity 1,691.90
Total Capital 2,083.62
Debt Weighting 18.80
Equity Weighting 81.20
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 438.42428.13457.31520.72506.89526.76547.41568.87591.17614.34
Operating Cash Flow 156.06138.91127.46140.43205.46172.16178.91185.92193.21200.79
Capital Expenditure -3.72-5.23-10.90-12.25-17.52-10.81-11.24-11.68-12.13-12.61
Free Cash Flow 152.34133.68116.56128.18187.94161.35167.67174.25181.08188.18
WACC
PV LFCF 151.93148.67145.48142.35139.30
SUM PV LFCF 727.72

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.20
Free cash flow (t + 1) 191.94
Terminal Value 4,569.97
Present Value of Terminal Value 3,382.91

Intrinsic Value

Enterprise Value 4,110.64
Net Debt -887.54
Equity Value 4,998.17
Shares Outstanding 125.23
Equity Value Per Share 39.91