Discounted Cash Flow (DCF) Analysis Levered

Banco Santander, S.A. (SAN)

$4.46

+0.04 (+0.91%)
All numbers are in Millions, Currency in USD
Stock DCF: 24.97 | 4.46 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 52,32246,81248,40654,21659,59361,797.1364,082.7866,452.9768,910.8271,459.58
Revenue (%)
Operating Cash Flow 3,38966,15356,69127,70680,56255,765.6357,828.2059,967.0562,185.0264,485.01
Operating Cash Flow (%)
Capital Expenditure -14,143-8,520-11,403-10,840-13,643-13,802.50-14,313-14,842.39-15,391.35-15,960.62
Capital Expenditure (%)
Free Cash Flow -10,75457,63345,28816,86666,91941,963.1343,515.2045,124.6646,793.6648,524.39

Weighted Average Cost Of Capital

Share price $ 4.46
Beta 1.343
Diluted Shares Outstanding 17,040
Cost of Debt
Tax Rate 32.71
After-tax Cost of Debt 13.52%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.695
Total Debt 308,579
Total Equity 75,998.40
Total Capital 384,577.40
Debt Weighting 80.24
Equity Weighting 19.76
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 52,32246,81248,40654,21659,59361,797.1364,082.7866,452.9768,910.8271,459.58
Operating Cash Flow 3,38966,15356,69127,70680,56255,765.6357,828.2059,967.0562,185.0264,485.01
Capital Expenditure -14,143-8,520-11,403-10,840-13,643-13,802.50-14,313-14,842.39-15,391.35-15,960.62
Free Cash Flow -10,75457,63345,28816,86666,91941,963.1343,515.2045,124.6646,793.6648,524.39
WACC
PV LFCF 37,148.6634,102.9231,306.8928,740.1026,383.76
SUM PV LFCF 157,682.33

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 12.96
Free cash flow (t + 1) 49,494.88
Terminal Value 451,595.59
Present Value of Terminal Value 245,542.28

Intrinsic Value

Enterprise Value 403,224.61
Net Debt -22,312
Equity Value 425,536.61
Shares Outstanding 17,040
Equity Value Per Share 24.97