Discounted Cash Flow (DCF) Analysis Levered

Banco Santander, S.A. (SAN)

$2.89

+0.05 (+1.76%)
All numbers are in Millions, Currency in USD
Stock DCF: 54.99 | 2.89 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 50,12149,71452,32246,81248,44848,132.8347,819.7147,508.6247,199.5646,892.51
Revenue (%)
Operating Cash Flow 40,1883,4163,38966,15356,69133,872.1233,651.7733,432.8633,215.3632,999.29
Operating Cash Flow (%)
Capital Expenditure -8,988-12,195-14,143-8,520-11,403-10,707.69-10,638.03-10,568.83-10,500.08-10,431.77
Capital Expenditure (%)
Free Cash Flow 31,200-8,779-10,75457,63345,28823,164.4323,013.7422,864.0222,715.2922,567.52

Weighted Average Cost Of Capital

Share price $ 2.89
Beta 1.679
Diluted Shares Outstanding 17,316.29
Cost of Debt
Tax Rate 44.15
After-tax Cost of Debt 2.97%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.780
Total Debt 246,163
Total Equity 50,044.07
Total Capital 296,207.07
Debt Weighting 83.11
Equity Weighting 16.89
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 50,12149,71452,32246,81248,44848,132.8347,819.7147,508.6247,199.5646,892.51
Operating Cash Flow 40,1883,4163,38966,15356,69133,872.1233,651.7733,432.8633,215.3632,999.29
Capital Expenditure -8,988-12,195-14,143-8,520-11,403-10,707.69-10,638.03-10,568.83-10,500.08-10,431.77
Free Cash Flow 31,200-8,779-10,75457,63345,28823,164.4323,013.7422,864.0222,715.2922,567.52
WACC
PV LFCF 22,211.5521,159.3320,156.9419,202.0518,292.39
SUM PV LFCF 101,022.26

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 4.29
Free cash flow (t + 1) 23,018.87
Terminal Value 1,005,190.65
Present Value of Terminal Value 814,770.14

Intrinsic Value

Enterprise Value 915,792.40
Net Debt -36,509
Equity Value 952,301.40
Shares Outstanding 17,316.29
Equity Value Per Share 54.99