Discounted Cash Flow (DCF) Analysis Levered

Peapack-Gladstone Financial Corpora... (PGC)

$35.14

-0.28 (-0.79%)

All numbers are in Millions, Currency in USD

Stock DCF: 79.09 | 35.14 | 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	143.35	156.70	174.97	189.36	210.30	231.47	254.76	280.40	308.63	339.69
Revenue (%)
Operating Cash Flow	55.93	64.25	86.30	36.72	78.20	86.07	94.73	104.26	114.76	126.31
Operating Cash Flow (%)
Capital Expenditure	-2.38	-1.06	-1.71	-3.08	-2.59	-2.86	-3.14	-3.46	-3.81	-4.19
Capital Expenditure (%)
Free Cash Flow	53.55	63.19	84.59	33.64	75.60	83.21	91.59	100.80	110.95	122.11

Weighted Average Cost Of Capital

Share price	$ 35.14
Beta	1.092
Diluted Shares Outstanding	19.29
Cost of Debt
Tax Rate	27.09
After-tax Cost of Debt	10.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.700
Total Debt	148.63
Total Equity	677.94
Total Capital	826.57
Debt Weighting	17.98
Equity Weighting	82.02
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	143.35	156.70	174.97	189.36	210.30	231.47	254.76	280.40	308.63	339.69
Operating Cash Flow	55.93	64.25	86.30	36.72	78.20	86.07	94.73	104.26	114.76	126.31
Capital Expenditure	-2.38	-1.06	-1.71	-3.08	-2.59	-2.86	-3.14	-3.46	-3.81	-4.19
Free Cash Flow	53.55	63.19	84.59	33.64	75.60	83.21	91.59	100.80	110.95	122.11
WACC
PV LFCF						64.11	64.69	65.28	65.86	66.46
SUM PV LFCF										388.37

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.08
Free cash flow (t + 1)	124.56
Terminal Value	1,759.28
Present Value of Terminal Value	1,139.22

Intrinsic Value

Enterprise Value	1,527.59
Net Debt	1.83
Equity Value	1,525.77
Shares Outstanding	19.29
Equity Value Per Share	79.09