Discounted Cash Flow (DCF) Analysis Levered

Preferred Bank (PFBC)

$75.13

+0.53 (+0.71%)
All numbers are in Millions, Currency in USD
Stock DCF: 189.27 | 75.13 | 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 134.97163.01170.88180.21193.62212.26232.70255.10279.66306.58
Revenue (%)
Operating Cash Flow 53.1899.0186.76103.77119.63114.74125.78137.89151.17165.72
Operating Cash Flow (%)
Capital Expenditure -1.36-2.77-6.09-1.50-0.60-3.15-3.45-3.78-4.14-4.54
Capital Expenditure (%)
Free Cash Flow 51.8296.2580.67102.27119.03111.59122.34134.11147.03161.18

Weighted Average Cost Of Capital

Share price $ 75.13
Beta 1.149
Diluted Shares Outstanding 14.89
Cost of Debt
Tax Rate 28.83
After-tax Cost of Debt 10.50%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.113
Total Debt 170.62
Total Equity 1,118.33
Total Capital 1,288.95
Debt Weighting 13.24
Equity Weighting 86.76
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 134.97163.01170.88180.21193.62212.26232.70255.10279.66306.58
Operating Cash Flow 53.1899.0186.76103.77119.63114.74125.78137.89151.17165.72
Capital Expenditure -1.36-2.77-6.09-1.50-0.60-3.15-3.45-3.78-4.14-4.54
Free Cash Flow 51.8296.2580.67102.27119.03111.59122.34134.11147.03161.18
WACC
PV LFCF 102.10102.40102.71103.02103.33
SUM PV LFCF 513.56

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.30
Free cash flow (t + 1) 164.40
Terminal Value 2,252.11
Present Value of Terminal Value 1,443.74

Intrinsic Value

Enterprise Value 1,957.30
Net Debt -859.99
Equity Value 2,817.29
Shares Outstanding 14.89
Equity Value Per Share 189.27