Discounted Cash Flow (DCF) Analysis Levered

Sterling Bancorp (STL)

$26.29

-0.88 (-3.24%)
All numbers are in Millions, Currency in USD
Stock DCF: 45.18 | 26.29 | 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 640.351,058.801,032.05989.931,004.821,156.151,330.281,530.641,761.172,026.42
Revenue (%)
Operating Cash Flow 242.60394.77438.07391.84394.89454.37522.80601.54692.14796.39
Operating Cash Flow (%)
Capital Expenditure -8.26-24.02-23.71-20.06-19.80-22.78-26.21-30.16-34.70-39.93
Capital Expenditure (%)
Free Cash Flow 234.35370.76414.36371.78375.10431.59496.59571.39657.44756.46

Weighted Average Cost Of Capital

Share price $ 26.29
Beta 1.533
Diluted Shares Outstanding 193.04
Cost of Debt
Tax Rate 21.10
After-tax Cost of Debt 3.73%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.024
Total Debt 1,062.55
Total Equity 5,074.93
Total Capital 6,137.49
Debt Weighting 17.31
Equity Weighting 82.69
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 640.351,058.801,032.05989.931,004.821,156.151,330.281,530.641,761.172,026.42
Operating Cash Flow 242.60394.77438.07391.84394.89454.37522.80601.54692.14796.39
Capital Expenditure -8.26-24.02-23.71-20.06-19.80-22.78-26.21-30.16-34.70-39.93
Free Cash Flow 234.35370.76414.36371.78375.10431.59496.59571.39657.44756.46
WACC
PV LFCF 396.21418.51442.07466.95493.23
SUM PV LFCF 2,216.96

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.93
Free cash flow (t + 1) 771.59
Terminal Value 11,134.06
Present Value of Terminal Value 7,259.66

Intrinsic Value

Enterprise Value 9,476.62
Net Debt 754.54
Equity Value 8,722.08
Shares Outstanding 193.04
Equity Value Per Share 45.18