Discounted Cash Flow (DCF) Analysis Levered

Regions Financial Corporation (RF)

$18.575

+0.01 (+0.08%)
All numbers are in Millions, Currency in USD
Stock DCF: 57.72 | 18.575 | undervalue

Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 5,8215,8256,2256,3767,0997,466.397,852.798,259.188,686.619,136.16
Revenue (%)
Operating Cash Flow 2,2752,5812,3243,0303,1023,164.903,328.693,500.963,682.143,872.70
Operating Cash Flow (%)
Capital Expenditure -71-24-59-54.82-61.04-64.20-67.52-71.02-74.69-78.56
Capital Expenditure (%)
Free Cash Flow 2,2042,5572,2652,975.183,040.963,100.703,261.173,429.943,607.453,794.14

Weighted Average Cost Of Capital

Share price $ 18.575
Beta 1.200
Diluted Shares Outstanding 942
Cost of Debt
Tax Rate 21.94
After-tax Cost of Debt 10.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.414
Total Debt 2,284
Total Equity 17,497.65
Total Capital 19,781.65
Debt Weighting 11.55
Equity Weighting 88.45
Wacc

Build Up Free Cash Flow

Year
A/P
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Projected
2024
Projected
2025
Projected
2026
Projected
2027
Projected
Revenue 5,8215,8256,2256,3767,0997,466.397,852.798,259.188,686.619,136.16
Operating Cash Flow 2,2752,5812,3243,0303,1023,164.903,328.693,500.963,682.143,872.70
Capital Expenditure -71-24-59-54.82-61.04-64.20-67.52-71.02-74.69-78.56
Free Cash Flow 2,2042,5572,2652,975.183,040.963,100.703,261.173,429.943,607.453,794.14
WACC
PV LFCF 2,829.882,716.382,607.422,502.842,402.45
SUM PV LFCF 13,058.97

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 9.57
Free cash flow (t + 1) 3,870.02
Terminal Value 51,123.13
Present Value of Terminal Value 32,371.23

Intrinsic Value

Enterprise Value 45,430.20
Net Debt -8,943
Equity Value 54,373.20
Shares Outstanding 942
Equity Value Per Share 57.72