Discounted Cash Flow (DCF) Analysis Levered

Banco Santander, S.A. (SAN)

$3.43

-0.05 (-1.44%)
All numbers are in Millions, Currency in USD
Stock DCF: 25.31 | 3.43 | 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 49,71452,32246,81248,40654,22355,597.1857,006.1958,450.9159,932.2561,451.12
Revenue (%)
Operating Cash Flow 3,4163,38966,15356,69127,70635,902.0936,811.9637,744.9038,701.4739,682.29
Operating Cash Flow (%)
Capital Expenditure -12,195-14,143-8,520-11,403-10,840-12,599.43-12,918.74-13,246.14-13,581.84-13,926.05
Capital Expenditure (%)
Free Cash Flow -8,779-10,75457,63345,28816,86623,302.6623,893.2224,498.7525,119.6325,756.24

Weighted Average Cost Of Capital

Share price $ 3.43
Beta 1.361
Diluted Shares Outstanding 17,321.03
Cost of Debt
Tax Rate 37.02
After-tax Cost of Debt 7.37%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.169
Total Debt 280,339
Total Equity 59,411.13
Total Capital 339,750.13
Debt Weighting 82.51
Equity Weighting 17.49
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 49,71452,32246,81248,40654,22355,597.1857,006.1958,450.9159,932.2561,451.12
Operating Cash Flow 3,4163,38966,15356,69127,70635,902.0936,811.9637,744.9038,701.4739,682.29
Capital Expenditure -12,195-14,143-8,520-11,403-10,840-12,599.43-12,918.74-13,246.14-13,581.84-13,926.05
Free Cash Flow -8,779-10,75457,63345,28816,86623,302.6623,893.2224,498.7525,119.6325,756.24
WACC
PV LFCF 15,962.5915,174.4214,425.1713,712.9213,035.83
SUM PV LFCF 97,869.12

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 7.86
Free cash flow (t + 1) 26,271.37
Terminal Value 448,316.83
Present Value of Terminal Value 307,102.22

Intrinsic Value

Enterprise Value 404,971.34
Net Debt -33,397
Equity Value 438,368.34
Shares Outstanding 17,321.03
Equity Value Per Share 25.31