Discounted Cash Flow (DCF) Analysis Levered

Summit Financial Group, Inc. (SMMF)

$27.82

+0.17 (+0.61%)

All numbers are in Millions, Currency in USD

Stock DCF: 185.60 | 27.82 | 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	80.73	85.74	94.47	113.34	127.47	143.03	160.49	180.09	202.07	226.74
Revenue (%)
Operating Cash Flow	24.37	38.52	40.93	44.68	61.85	59.04	66.25	74.33	83.41	93.59
Operating Cash Flow (%)
Capital Expenditure	-6.18	-5.55	-9.22	-8.64	-4.54	-10.03	-11.26	-12.63	-14.17	-15.90
Capital Expenditure (%)
Free Cash Flow	18.19	32.98	31.71	36.04	57.31	49.01	54.99	61.70	69.23	77.69

Weighted Average Cost Of Capital

Share price	$ 27.82
Beta	0.398
Diluted Shares Outstanding	12.98
Cost of Debt
Tax Rate	20.32
After-tax Cost of Debt	3.78%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.391
Total Debt	263.16
Total Equity	360.98
Total Capital	624.13
Debt Weighting	42.16
Equity Weighting	57.84
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	80.73	85.74	94.47	113.34	127.47	143.03	160.49	180.09	202.07	226.74
Operating Cash Flow	24.37	38.52	40.93	44.68	61.85	59.04	66.25	74.33	83.41	93.59
Capital Expenditure	-6.18	-5.55	-9.22	-8.64	-4.54	-10.03	-11.26	-12.63	-14.17	-15.90
Free Cash Flow	18.19	32.98	31.71	36.04	57.31	49.01	54.99	61.70	69.23	77.69
WACC
PV LFCF						46.80	50.15	53.74	57.59	61.72
SUM PV LFCF										270.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	4.71
Free cash flow (t + 1)	79.24
Terminal Value	2,924
Present Value of Terminal Value	2,322.93

Intrinsic Value

Enterprise Value	2,592.94
Net Debt	184.70
Equity Value	2,408.24
Shares Outstanding	12.98
Equity Value Per Share	185.60