Discounted Cash Flow (DCF) Analysis Levered

Regions Financial Corporation (RF)

$21.88

+0.27 (+1.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 72.67 | 21.88 | 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 5,6705,8215,8256,2256,3766,567.676,765.106,968.477,177.957,393.73
Revenue (%)
Operating Cash Flow 2,2812,2752,5812,3243,0302,738.412,820.732,905.522,992.863,082.83
Operating Cash Flow (%)
Capital Expenditure -191-71-24-59-94.81-97.66-100.60-103.62-106.74-109.95
Capital Expenditure (%)
Free Cash Flow 2,0902,2042,5572,2652,935.192,640.742,720.132,801.902,886.132,972.89

Weighted Average Cost Of Capital

Share price $ 21.88
Beta 1.274
Diluted Shares Outstanding 958
Cost of Debt
Tax Rate 21.59
After-tax Cost of Debt 5.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.755
Total Debt 2,407
Total Equity 20,961.04
Total Capital 23,368.04
Debt Weighting 10.30
Equity Weighting 89.70
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 5,6705,8215,8256,2256,3766,567.676,765.106,968.477,177.957,393.73
Operating Cash Flow 2,2812,2752,5812,3243,0302,738.412,820.732,905.522,992.863,082.83
Capital Expenditure -191-71-24-59-94.81-97.66-100.60-103.62-106.74-109.95
Free Cash Flow 2,0902,2042,5572,2652,935.192,640.742,720.132,801.902,886.132,972.89
WACC
PV LFCF 2,435.882,314.462,199.102,089.481,985.33
SUM PV LFCF 11,024.25

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.41
Free cash flow (t + 1) 3,032.34
Terminal Value 47,306.46
Present Value of Terminal Value 31,591.76

Intrinsic Value

Enterprise Value 42,616
Net Debt -27,004
Equity Value 69,620
Shares Outstanding 958
Equity Value Per Share 72.67