Discounted Cash Flow (DCF) Analysis Levered

Salisbury Bancorp, Inc. (SAL)

$27.88

+0.43 (+1.57%)

All numbers are in Millions, Currency in USD

Stock DCF: 70.99 | 27.88 | 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	41.52	42.93	48.15	51.67	56.36	60.87	65.73	70.98	76.65	82.78
Revenue (%)
Operating Cash Flow	13.28	14.33	13.80	18.05	27.45	21.63	23.35	25.22	27.24	29.41
Operating Cash Flow (%)
Capital Expenditure	-1.39	-2.05	-4.37	-2.31	-0.85	-2.82	-3.05	-3.29	-3.56	-3.84
Capital Expenditure (%)
Free Cash Flow	11.88	12.28	9.44	15.73	26.60	18.80	20.31	21.93	23.68	25.57

Weighted Average Cost Of Capital

Share price	$ 27.88
Beta	0.596
Diluted Shares Outstanding	5.67
Cost of Debt
Tax Rate	18.23
After-tax Cost of Debt	10.44%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.250
Total Debt	38.92
Total Equity	158.08
Total Capital	197
Debt Weighting	19.76
Equity Weighting	80.24
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	41.52	42.93	48.15	51.67	56.36	60.87	65.73	70.98	76.65	82.78
Operating Cash Flow	13.28	14.33	13.80	18.05	27.45	21.63	23.35	25.22	27.24	29.41
Capital Expenditure	-1.39	-2.05	-4.37	-2.31	-0.85	-2.82	-3.05	-3.29	-3.56	-3.84
Free Cash Flow	11.88	12.28	9.44	15.73	26.60	18.80	20.31	21.93	23.68	25.57
WACC
PV LFCF						11.93	11.94	11.95	11.96	11.98
SUM PV LFCF										87.32

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.88
Free cash flow (t + 1)	26.08
Terminal Value	443.58
Present Value of Terminal Value	303.58

Intrinsic Value

Enterprise Value	390.90
Net Debt	-11.62
Equity Value	402.52
Shares Outstanding	5.67
Equity Value Per Share	70.99