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	5,821	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