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 80.7385.7494.47113.34127.47143.03160.49180.09202.07226.74
Revenue (%)
Operating Cash Flow 24.3738.5240.9344.6861.8559.0466.2574.3383.4193.59
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 18.1932.9831.7136.0457.3149.0154.9961.7069.2377.69

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 80.7385.7494.47113.34127.47143.03160.49180.09202.07226.74
Operating Cash Flow 24.3738.5240.9344.6861.8559.0466.2574.3383.4193.59
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 18.1932.9831.7136.0457.3149.0154.9961.7069.2377.69
WACC
PV LFCF 46.8050.1553.7457.5961.72
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