Discounted Cash Flow (DCF) Analysis Levered

Select Bancorp, Inc. (SLCT)

$18.88

0.00 (0.00%)

All numbers are in Millions, Currency in USD

Stock DCF: 17.13 | 18.88 | overvalue

Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	34.20	37.58	52.09	52.31	58.57	67.48	77.76	89.59	103.23	118.94
Revenue (%)
Operating Cash Flow	8.48	6.56	4.81	13.36	8.45	12.34	14.22	16.39	18.88	21.76
Operating Cash Flow (%)
Capital Expenditure	-	-0.93	-1.56	-1.38	-1.32	-1.75	-2.01	-2.32	-2.67	-3.08
Capital Expenditure (%)
Free Cash Flow	8.48	5.63	3.26	11.98	7.14	10.60	12.21	14.07	16.21	18.68

Weighted Average Cost Of Capital

Share price	$ 18.88
Beta	0.861
Diluted Shares Outstanding	17.42
Cost of Debt
Tax Rate	21.34
After-tax Cost of Debt	39.67%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.766
Total Debt	21.33
Total Equity	328.81
Total Capital	350.14
Debt Weighting	6.09
Equity Weighting	93.91
Wacc

Build Up Free Cash Flow

Year A/P	2016 Actual	2017 Actual	2018 Actual	2019 Actual	2020 Actual	2021 Projected	2022 Projected	2023 Projected	2024 Projected	2025 Projected
Revenue	34.20	37.58	52.09	52.31	58.57	67.48	77.76	89.59	103.23	118.94
Operating Cash Flow	8.48	6.56	4.81	13.36	8.45	12.34	14.22	16.39	18.88	21.76
Capital Expenditure	-	-0.93	-1.56	-1.38	-1.32	-1.75	-2.01	-2.32	-2.67	-3.08
Free Cash Flow	8.48	5.63	3.26	11.98	7.14	10.60	12.21	14.07	16.21	18.68
WACC
PV LFCF						9.66	10.14	10.65	11.19	11.75
SUM PV LFCF										53.40

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.71
Free cash flow (t + 1)	19.05
Terminal Value	247.10
Present Value of Terminal Value	155.47

Intrinsic Value

Enterprise Value	208.87
Net Debt	-89.39
Equity Value	298.26
Shares Outstanding	17.42
Equity Value Per Share	17.13