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 220.01321.49336.63463.41523.89656.88823.641,032.741,294.911,623.65
Revenue (%)
Operating Cash Flow 69.42147.6599.94141.98216.40235.31295.05369.95463.86581.62
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 61.98137.2594.80136.94204.91220.30276.22346.34434.27544.51

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 220.01321.49336.63463.41523.89656.88823.641,032.741,294.911,623.65
Operating Cash Flow 69.42147.6599.94141.98216.40235.31295.05369.95463.86581.62
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 61.98137.2594.80136.94204.91220.30276.22346.34434.27544.51
WACC
PV LFCF 202.68233.82269.74311.17358.97
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