Discounted Cash Flow (DCF) Analysis Levered

Old Second Bancorp, Inc. (OSBC)

$17.24

-0.39 (-2.21%)
All numbers are in Millions, Currency in USD
Stock DCF: 48.20 | 17.24 | 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 103.91121.35131.55127.04133.46142.40151.94162.13172.99184.59
Revenue (%)
Operating Cash Flow 37.1054.9152.6425.9931.0546.9050.0553.4056.9860.80
Operating Cash Flow (%)
Capital Expenditure -1.05-1.90-4.38-3.92-2.03-2.99-3.20-3.41-3.64-3.88
Capital Expenditure (%)
Free Cash Flow 36.0553.0148.2622.0729.0143.9146.8549.9953.3456.92

Weighted Average Cost Of Capital

Share price $ 17.24
Beta 1.120
Diluted Shares Outstanding 30.74
Cost of Debt
Tax Rate 28.07
After-tax Cost of Debt 4.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.922
Total Debt 148.54
Total Equity 529.92
Total Capital 678.46
Debt Weighting 21.89
Equity Weighting 78.11
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 103.91121.35131.55127.04133.46142.40151.94162.13172.99184.59
Operating Cash Flow 37.1054.9152.6425.9931.0546.9050.0553.4056.9860.80
Capital Expenditure -1.05-1.90-4.38-3.92-2.03-2.99-3.20-3.41-3.64-3.88
Free Cash Flow 36.0553.0148.2622.0729.0143.9146.8549.9953.3456.92
WACC
PV LFCF 40.7140.2739.8439.4138.99
SUM PV LFCF 199.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.86
Free cash flow (t + 1) 58.06
Terminal Value 990.71
Present Value of Terminal Value 678.64

Intrinsic Value

Enterprise Value 877.87
Net Debt -603.57
Equity Value 1,481.43
Shares Outstanding 30.74
Equity Value Per Share 48.20