Discounted Cash Flow (DCF) Analysis Levered

OP Bancorp (OPBK)

$11.85

+0.06 (+0.51%)

All numbers are in Millions, Currency in USD

Stock DCF: 39.78 | 11.85 | 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	44.70	50.29	55.70	56.14	77.04	88.85	102.47	118.17	136.28	157.16
Revenue (%)
Operating Cash Flow	-2.15	30.61	18.16	-4.96	15.38	17.73	20.45	23.59	27.20	31.37
Operating Cash Flow (%)
Capital Expenditure	-0.42	-1.20	-1.74	-0.62	-1.45	-1.68	-1.93	-2.23	-2.57	-2.96
Capital Expenditure (%)
Free Cash Flow	-2.57	29.41	16.42	-5.57	13.92	16.06	18.52	21.36	24.63	28.41

Weighted Average Cost Of Capital

Share price	$ 11.85
Beta	0.536
Diluted Shares Outstanding	15.16
Cost of Debt
Tax Rate	29.03
After-tax Cost of Debt	21.57%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.191
Total Debt	10.31
Total Equity	179.59
Total Capital	189.90
Debt Weighting	5.43
Equity Weighting	94.57
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	44.70	50.29	55.70	56.14	77.04	88.85	102.47	118.17	136.28	157.16
Operating Cash Flow	-2.15	30.61	18.16	-4.96	15.38	17.73	20.45	23.59	27.20	31.37
Capital Expenditure	-0.42	-1.20	-1.74	-0.62	-1.45	-1.68	-1.93	-2.23	-2.57	-2.96
Free Cash Flow	-2.57	29.41	16.42	-5.57	13.92	16.06	18.52	21.36	24.63	28.41
WACC
PV LFCF						15	16.17	17.42	18.77	20.22
SUM PV LFCF										87.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.03
Free cash flow (t + 1)	28.97
Terminal Value	576.02
Present Value of Terminal Value	410.12

Intrinsic Value

Enterprise Value	497.70
Net Debt	-105.15
Equity Value	602.85
Shares Outstanding	15.16
Equity Value Per Share	39.78