Discounted Cash Flow (DCF) Analysis Levered

OP Bancorp (OPBK)

$8.24

+0.22 (+2.74%)

All numbers are in Millions, Currency in USD

Stock DCF: 35.62 | 8.24 | 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	50.29	55.70	56.13	77.04	94.53	111.43	131.34	154.81	182.48	215.10
Revenue (%)
Operating Cash Flow	30.60	18.16	-4.96	-28.28	83.73	30.42	35.86	42.27	49.82	58.73
Operating Cash Flow (%)
Capital Expenditure	-1.20	-1.74	-0.62	-1.13	-1.41	-2.13	-2.51	-2.96	-3.49	-4.11
Capital Expenditure (%)
Free Cash Flow	29.41	16.42	-5.58	-29.40	82.32	28.29	33.35	39.31	46.34	54.62

Weighted Average Cost Of Capital

Share price	$ 8.24
Beta	0.553
Diluted Shares Outstanding	15.16
Cost of Debt
Tax Rate	28.71
After-tax Cost of Debt	78.88%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.300
Total Debt	10.21
Total Equity	124.88
Total Capital	135.09
Debt Weighting	7.56
Equity Weighting	92.44
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	50.29	55.70	56.13	77.04	94.53	111.43	131.34	154.81	182.48	215.10
Operating Cash Flow	30.60	18.16	-4.96	-28.28	83.73	30.42	35.86	42.27	49.82	58.73
Capital Expenditure	-1.20	-1.74	-0.62	-1.13	-1.41	-2.13	-2.51	-2.96	-3.49	-4.11
Free Cash Flow	29.41	16.42	-5.58	-29.40	82.32	28.29	33.35	39.31	46.34	54.62
WACC
PV LFCF						25.31	26.69	28.14	29.67	31.28
SUM PV LFCF										141.09

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	11.79
Free cash flow (t + 1)	55.71
Terminal Value	569.06
Present Value of Terminal Value	325.95

Intrinsic Value

Enterprise Value	467.03
Net Debt	-72.76
Equity Value	539.79
Shares Outstanding	15.16
Equity Value Per Share	35.62