Discounted Cash Flow (DCF) Analysis Levered

Shore Bancshares, Inc. (SHBI)

$11.34

+0.14 (+1.25%)
All numbers are in Millions, Currency in USD
Stock DCF: 103.75 | 11.34 | undervalue

Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 60.1563.3577.63124.39247.24362.73532.18780.781,145.521,680.63
Revenue (%)
Operating Cash Flow 13.7418.43-7.5052.6512.2164.9695.30139.82205.14300.97
Operating Cash Flow (%)
Capital Expenditure -2.24-2.37-3.45-2.42-8.57-12.57-18.45-27.07-39.71-58.26
Capital Expenditure (%)
Free Cash Flow 11.5016.05-10.9550.233.6452.3876.85112.76165.43242.71

Weighted Average Cost Of Capital

Share price $ 11.34
Beta 0.918
Diluted Shares Outstanding 26.66
Cost of Debt
Tax Rate 20.84
After-tax Cost of Debt 9.27%
Risk-Free Rate
Market Risk Premium
Cost of Equity 8.541
Total Debt 85.15
Total Equity 302.32
Total Capital 387.48
Debt Weighting 21.98
Equity Weighting 78.02
Wacc

Build Up Free Cash Flow

Year
A/P
2019
Actual
2020
Actual
2021
Actual
2022
Actual
2023
Actual
2024
Projected
2025
Projected
2026
Projected
2027
Projected
2028
Projected
Revenue 60.1563.3577.63124.39247.24362.73532.18780.781,145.521,680.63
Operating Cash Flow 13.7418.43-7.5052.6512.2164.9695.30139.82205.14300.97
Capital Expenditure -2.24-2.37-3.45-2.42-8.57-12.57-18.45-27.07-39.71-58.26
Free Cash Flow 11.5016.05-10.9550.233.6452.3876.85112.76165.43242.71
WACC
PV LFCF 31.7642.8657.8578.08105.39
SUM PV LFCF 479.45

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.70
Free cash flow (t + 1) 247.56
Terminal Value 3,694.98
Present Value of Terminal Value 2,434.80

Intrinsic Value

Enterprise Value 2,914.26
Net Debt 148.33
Equity Value 2,765.93
Shares Outstanding 26.66
Equity Value Per Share 103.75