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 620.05841.94896.28988.861,140.331,333.861,560.241,825.042,134.782,497.08
Revenue (%)
Operating Cash Flow 147.94470.76434.29427.82657.44611.30715.05836.40978.351,144.39
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 94.44447.02392.14388.06634.27552.06645.76755.35883.551,033.50

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 620.05841.94896.28988.861,140.331,333.861,560.241,825.042,134.782,497.08
Operating Cash Flow 147.94470.76434.29427.82657.44611.30715.05836.40978.351,144.39
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 94.44447.02392.14388.06634.27552.06645.76755.35883.551,033.50
WACC
PV LFCF 371.41401.33433.67468.61506.36
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