Discounted Cash Flow (DCF) Analysis Levered

Pinnacle Financial Partners, Inc. (PNFP)

$72.8

+4.24 (+6.18%)

All numbers are in Millions, Currency in USD

Stock DCF: 224.27 | 72.8 | 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	620.05	841.94	896.28	988.86	1,140.33	1,333.86	1,560.24	1,825.04	2,134.78	2,497.08
Revenue (%)
Operating Cash Flow	147.94	470.76	434.29	427.82	657.44	611.30	715.05	836.40	978.35	1,144.39
Operating Cash Flow (%)
Capital Expenditure	-53.50	-23.74	-42.15	-39.76	-23.18	-59.23	-69.29	-81.05	-94.80	-110.89
Capital Expenditure (%)
Free Cash Flow	94.44	447.02	392.14	388.06	634.27	552.06	645.76	755.35	883.55	1,033.50

Weighted Average Cost Of Capital

Share price	$ 72.8
Beta	1.193
Diluted Shares Outstanding	76.02
Cost of Debt
Tax Rate	19.11
After-tax Cost of Debt	6.09%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.757
Total Debt	1,311.85
Total Equity	5,534.60
Total Capital	6,846.45
Debt Weighting	19.16
Equity Weighting	80.84
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	620.05	841.94	896.28	988.86	1,140.33	1,333.86	1,560.24	1,825.04	2,134.78	2,497.08
Operating Cash Flow	147.94	470.76	434.29	427.82	657.44	611.30	715.05	836.40	978.35	1,144.39
Capital Expenditure	-53.50	-23.74	-42.15	-39.76	-23.18	-59.23	-69.29	-81.05	-94.80	-110.89
Free Cash Flow	94.44	447.02	392.14	388.06	634.27	552.06	645.76	755.35	883.55	1,033.50
WACC
PV LFCF						371.41	401.33	433.67	468.61	506.36
SUM PV LFCF										2,995.30

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.25
Free cash flow (t + 1)	1,054.17
Terminal Value	16,866.73
Present Value of Terminal Value	11,347.27

Intrinsic Value

Enterprise Value	14,342.57
Net Debt	-2,707.18
Equity Value	17,049.75
Shares Outstanding	76.02
Equity Value Per Share	224.27