Discounted Cash Flow (DCF) Analysis Levered

Sandy Spring Bancorp, Inc. (SASR)

$37.82

-0.72 (-1.87%)

All numbers are in Millions, Currency in USD

Stock DCF: 150.71 | 37.82 | 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	220.01	321.49	336.63	463.41	523.89	656.88	823.64	1,032.74	1,294.91	1,623.65
Revenue (%)
Operating Cash Flow	69.42	147.65	99.94	141.98	216.40	235.31	295.05	369.95	463.86	581.62
Operating Cash Flow (%)
Capital Expenditure	-7.44	-10.40	-5.15	-5.04	-11.49	-15.01	-18.82	-23.60	-29.60	-37.11
Capital Expenditure (%)
Free Cash Flow	61.98	137.25	94.80	136.94	204.91	220.30	276.22	346.34	434.27	544.51

Weighted Average Cost Of Capital

Share price	$ 37.82
Beta	1.006
Diluted Shares Outstanding	47.09
Cost of Debt
Tax Rate	24.56
After-tax Cost of Debt	11.26%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.443
Total Debt	172.71
Total Equity	1,780.83
Total Capital	1,953.54
Debt Weighting	8.84
Equity Weighting	91.16
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	220.01	321.49	336.63	463.41	523.89	656.88	823.64	1,032.74	1,294.91	1,623.65
Operating Cash Flow	69.42	147.65	99.94	141.98	216.40	235.31	295.05	369.95	463.86	581.62
Capital Expenditure	-7.44	-10.40	-5.15	-5.04	-11.49	-15.01	-18.82	-23.60	-29.60	-37.11
Free Cash Flow	61.98	137.25	94.80	136.94	204.91	220.30	276.22	346.34	434.27	544.51
WACC
PV LFCF						202.68	233.82	269.74	311.17	358.97
SUM PV LFCF										1,376.38

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.69
Free cash flow (t + 1)	555.40
Terminal Value	8,302.01
Present Value of Terminal Value	5,473.13

Intrinsic Value

Enterprise Value	6,849.51
Net Debt	-247
Equity Value	7,096.50
Shares Outstanding	47.09
Equity Value Per Share	150.71