Discounted Cash Flow (DCF) Analysis Levered

Pacific Mercantile Bancorp (PMBC)

$9.4

-0.11 (-1.16%)
All numbers are in Millions, Currency in USD
Stock DCF: 23.65 | 9.4 | undervalue

Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 38.0947.6652.7954.5157.7364.2371.4779.5288.4898.45
Revenue (%)
Operating Cash Flow 4.3510.5817.2617.0210.1814.8016.4618.3220.3822.68
Operating Cash Flow (%)
Capital Expenditure 0.76-0.270.831.11-0.300.580.640.720.800.89
Capital Expenditure (%)
Free Cash Flow 5.1010.3218.0918.139.8815.3817.1119.0321.1823.57

Weighted Average Cost Of Capital

Share price $ 9.4
Beta 0.933
Diluted Shares Outstanding 23.52
Cost of Debt
Tax Rate 32.91
After-tax Cost of Debt 21.00%
Risk-Free Rate
Market Risk Premium
Cost of Equity 7.530
Total Debt 27.53
Total Equity 221.05
Total Capital 248.58
Debt Weighting 11.07
Equity Weighting 88.93
Wacc

Build Up Free Cash Flow

Year
A/P
2016
Actual
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Projected
2022
Projected
2023
Projected
2024
Projected
2025
Projected
Revenue 38.0947.6652.7954.5157.7364.2371.4779.5288.4898.45
Operating Cash Flow 4.3510.5817.2617.0210.1814.8016.4618.3220.3822.68
Capital Expenditure 0.76-0.270.831.11-0.300.580.640.720.800.89
Free Cash Flow 5.1010.3218.0918.139.8815.3817.1119.0321.1823.57
WACC
PV LFCF 14.1014.3914.6914.9915.30
SUM PV LFCF 73.48

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.02
Free cash flow (t + 1) 24.04
Terminal Value 342.40
Present Value of Terminal Value 222.34

Intrinsic Value

Enterprise Value 295.82
Net Debt -260.34
Equity Value 556.16
Shares Outstanding 23.52
Equity Value Per Share 23.65