Discounted Cash Flow (DCF) Analysis Levered

Pacific Premier Bancorp, Inc. (PPBI)

$34.41

-0.88 (-2.49%)

All numbers are in Millions, Currency in USD

Stock DCF: 168.52 | 34.41 | 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	269.08	410.45	463.19	622.31	750.10	975.65	1,269.02	1,650.61	2,146.94	2,792.51
Revenue (%)
Operating Cash Flow	84	298.69	182.69	212.30	332.94	433.05	563.27	732.64	952.94	1,239.48
Operating Cash Flow (%)
Capital Expenditure	-4.16	-10.29	-18.83	-11.41	-18.67	-24.28	-31.58	-41.08	-53.43	-69.50
Capital Expenditure (%)
Free Cash Flow	79.83	288.39	163.86	200.89	314.27	408.77	531.69	691.56	899.51	1,169.98

Weighted Average Cost Of Capital

Share price	$ 34.41
Beta	1.226
Diluted Shares Outstanding	93.91
Cost of Debt
Tax Rate	26.24
After-tax Cost of Debt	2.85%
Risk-Free Rate
Market Risk Premium
Cost of Equity	9.407
Total Debt	888.57
Total Equity	3,231.32
Total Capital	4,119.89
Debt Weighting	21.57
Equity Weighting	78.43
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	269.08	410.45	463.19	622.31	750.10	975.65	1,269.02	1,650.61	2,146.94	2,792.51
Operating Cash Flow	84	298.69	182.69	212.30	332.94	433.05	563.27	732.64	952.94	1,239.48
Capital Expenditure	-4.16	-10.29	-18.83	-11.41	-18.67	-24.28	-31.58	-41.08	-53.43	-69.50
Free Cash Flow	79.83	288.39	163.86	200.89	314.27	408.77	531.69	691.56	899.51	1,169.98
WACC
PV LFCF						378.53	455.92	549.13	661.41	796.64
SUM PV LFCF										2,841.63

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.99
Free cash flow (t + 1)	1,193.38
Terminal Value	19,922.91
Present Value of Terminal Value	13,565.47

Intrinsic Value

Enterprise Value	16,407.10
Net Debt	581.65
Equity Value	15,825.45
Shares Outstanding	93.91
Equity Value Per Share	168.52