Discounted Cash Flow (DCF) Analysis Levered

Park National Corporation (PRK)

$137.43

+2.85 (+2.12%)

All numbers are in Millions, Currency in USD

Stock DCF: 254.32 | 137.43 | 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	324.39	368	394.93	453.29	459.84	502.35	548.80	599.53	654.96	715.52
Revenue (%)
Operating Cash Flow	87.99	132.95	111.01	111.65	157.33	150.91	164.87	180.11	196.76	214.95
Operating Cash Flow (%)
Capital Expenditure	-7.02	-11.53	-14.88	-28.63	-14.09	-18.53	-20.25	-22.12	-24.17	-26.40
Capital Expenditure (%)
Free Cash Flow	80.97	121.42	96.13	83.01	143.24	132.38	144.62	157.99	172.60	188.55

Weighted Average Cost Of Capital

Share price	$ 137.43
Beta	0.763
Diluted Shares Outstanding	16.31
Cost of Debt
Tax Rate	18.22
After-tax Cost of Debt	3.06%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.450
Total Debt	427
Total Equity	2,242.06
Total Capital	2,669.06
Debt Weighting	16.00
Equity Weighting	84.00
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	324.39	368	394.93	453.29	459.84	502.35	548.80	599.53	654.96	715.52
Operating Cash Flow	87.99	132.95	111.01	111.65	157.33	150.91	164.87	180.11	196.76	214.95
Capital Expenditure	-7.02	-11.53	-14.88	-28.63	-14.09	-18.53	-20.25	-22.12	-24.17	-26.40
Free Cash Flow	80.97	121.42	96.13	83.01	143.24	132.38	144.62	157.99	172.60	188.55
WACC
PV LFCF						124.99	128.93	132.99	137.18	141.50
SUM PV LFCF										665.58

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.91
Free cash flow (t + 1)	192.32
Terminal Value	4,918.77
Present Value of Terminal Value	3,691.23

Intrinsic Value

Enterprise Value	4,356.82
Net Debt	207.82
Equity Value	4,149
Shares Outstanding	16.31
Equity Value Per Share	254.32