Discounted Cash Flow (DCF) Analysis Levered

Western Asset Intermediate Muni Fun... (SBI)

$7.78

+0.06 (+0.78%)

All numbers are in Millions, Currency in USD

Stock DCF: 1,399.20 | 7.78 | 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	8.76	1.73	12.97	5.34	7.09	16.73	39.50	93.27	220.24	520.04
Revenue (%)
Operating Cash Flow	5.58	6.96	4.70	4.03	2.53	20.55	48.53	114.60	270.59	638.92
Operating Cash Flow (%)
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Capital Expenditure (%)
Free Cash Flow	-	-	-	-	-	20.55	48.53	114.60	270.59	638.92

Weighted Average Cost Of Capital

Share price	$ 7.78
Beta	0.280
Diluted Shares Outstanding	14.01
Cost of Debt
Tax Rate	0.00
After-tax Cost of Debt	0.63%
Risk-Free Rate
Market Risk Premium
Cost of Equity	4.812
Total Debt	1.45
Total Equity	109.02
Total Capital	110.46
Debt Weighting	1.31
Equity Weighting	98.69
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	8.76	1.73	12.97	5.34	7.09	16.73	39.50	93.27	220.24	520.04
Operating Cash Flow	5.58	6.96	4.70	4.03	2.53	20.55	48.53	114.60	270.59	638.92
Capital Expenditure	-	-	-	-	-	-	-	-	-	-
Free Cash Flow	-	-	-	-	-	20.55	48.53	114.60	270.59	638.92
WACC
PV LFCF						19.62	44.22	99.67	224.66	506.37
SUM PV LFCF										894.54

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.76
Free cash flow (t + 1)	651.70
Terminal Value	23,612.16
Present Value of Terminal Value	18,713.64

Intrinsic Value

Enterprise Value	19,608.18
Net Debt	1.45
Equity Value	19,606.74
Shares Outstanding	14.01
Equity Value Per Share	1,399.20