Discounted Cash Flow (DCF) Analysis Levered
Regions Financial Corporation (RF)
$18.575
+0.01 (+0.08%)
All numbers are in Millions, Currency in USD
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 | 5,821 | 5,825 | 6,225 | 6,376 | 7,099 | 7,466.39 | 7,852.79 | 8,259.18 | 8,686.61 | 9,136.16 |
---|---|---|---|---|---|---|---|---|---|---|
Revenue (%) | ||||||||||
Operating Cash Flow | 2,275 | 2,581 | 2,324 | 3,030 | 3,102 | 3,164.90 | 3,328.69 | 3,500.96 | 3,682.14 | 3,872.70 |
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 | 2,204 | 2,557 | 2,265 | 2,975.18 | 3,040.96 | 3,100.70 | 3,261.17 | 3,429.94 | 3,607.45 | 3,794.14 |
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 | 5,821 | 5,825 | 6,225 | 6,376 | 7,099 | 7,466.39 | 7,852.79 | 8,259.18 | 8,686.61 | 9,136.16 |
---|---|---|---|---|---|---|---|---|---|---|
Operating Cash Flow | 2,275 | 2,581 | 2,324 | 3,030 | 3,102 | 3,164.90 | 3,328.69 | 3,500.96 | 3,682.14 | 3,872.70 |
Capital Expenditure | -71 | -24 | -59 | -54.82 | -61.04 | -64.20 | -67.52 | -71.02 | -74.69 | -78.56 |
Free Cash Flow | 2,204 | 2,557 | 2,265 | 2,975.18 | 3,040.96 | 3,100.70 | 3,261.17 | 3,429.94 | 3,607.45 | 3,794.14 |
WACC | ||||||||||
PV LFCF | 2,829.88 | 2,716.38 | 2,607.42 | 2,502.84 | 2,402.45 | |||||
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 |