Discounted Cash Flow (DCF) Analysis Levered
Regions Financial Corporation (RF)
$21.88
+0.27 (+1.25%)
All numbers are in Millions, Currency in USD
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 | 5,670 | 5,821 | 5,825 | 6,225 | 6,376 | 6,567.67 | 6,765.10 | 6,968.47 | 7,177.95 | 7,393.73 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,281 | 2,275 | 2,581 | 2,324 | 3,030 | 2,738.41 | 2,820.73 | 2,905.52 | 2,992.86 | 3,082.83 |
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 | 2,090 | 2,204 | 2,557 | 2,265 | 2,935.19 | 2,640.74 | 2,720.13 | 2,801.90 | 2,886.13 | 2,972.89 |
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 | 5,670 | 5,821 | 5,825 | 6,225 | 6,376 | 6,567.67 | 6,765.10 | 6,968.47 | 7,177.95 | 7,393.73 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,281 | 2,275 | 2,581 | 2,324 | 3,030 | 2,738.41 | 2,820.73 | 2,905.52 | 2,992.86 | 3,082.83 |
Capital Expenditure | -191 | -71 | -24 | -59 | -94.81 | -97.66 | -100.60 | -103.62 | -106.74 | -109.95 |
Free Cash Flow | 2,090 | 2,204 | 2,557 | 2,265 | 2,935.19 | 2,640.74 | 2,720.13 | 2,801.90 | 2,886.13 | 2,972.89 |
WACC | ||||||||||
PV LFCF | 2,435.88 | 2,314.46 | 2,199.10 | 2,089.48 | 1,985.33 | |||||
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 |