Discounted Cash Flow (DCF) Analysis Levered

ServisFirst Bancshares, Inc. (SFBS)

$45.01

+3.64 (+8.80%)

All numbers are in Millions, Currency in USD

Stock DCF: 214.55 | 45.01 | 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	276.65	304.97	362.91	405.63	559.31	669.63	801.70	959.83	1,149.14	1,375.79
Revenue (%)
Operating Cash Flow	168.30	164.28	191.29	266.33	272.63	377.42	451.86	540.98	647.68	775.43
Operating Cash Flow (%)
Capital Expenditure	-2.30	-2.36	-2.30	-9.45	-6.39	-7.65	-9.16	-10.96	-13.12	-15.71
Capital Expenditure (%)
Free Cash Flow	166	161.92	188.99	256.88	266.24	369.77	442.70	530.02	634.56	759.72

Weighted Average Cost Of Capital

Share price	$ 45.01
Beta	0.850
Diluted Shares Outstanding	54.22
Cost of Debt
Tax Rate	18.58
After-tax Cost of Debt	4.07%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.703
Total Debt	-
Total Equity	2,440.55
Total Capital	2,440.55
Debt Weighting	0.00
Equity Weighting	100.00
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	276.65	304.97	362.91	405.63	559.31	669.63	801.70	959.83	1,149.14	1,375.79
Operating Cash Flow	168.30	164.28	191.29	266.33	272.63	377.42	451.86	540.98	647.68	775.43
Capital Expenditure	-2.30	-2.36	-2.30	-9.45	-6.39	-7.65	-9.16	-10.96	-13.12	-15.71
Free Cash Flow	166	161.92	188.99	256.88	266.24	369.77	442.70	530.02	634.56	759.72
WACC
PV LFCF						343.34	381.67	424.27	471.64	524.29
SUM PV LFCF										2,145.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.70
Free cash flow (t + 1)	774.91
Terminal Value	13,594.92
Present Value of Terminal Value	9,382.06

Intrinsic Value

Enterprise Value	11,527.27
Net Debt	-106.32
Equity Value	11,633.58
Shares Outstanding	54.22
Equity Value Per Share	214.55