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: 39.82 | 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	640.35	1,058.80	1,032.05	989.93	1,004.82	1,156.15	1,330.28	1,530.64	1,761.17	2,026.42
Revenue (%)
Operating Cash Flow	242.60	394.77	438.07	391.84	394.89	454.37	522.80	601.54	692.14	796.39
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	234.35	370.76	414.36	371.78	375.10	431.59	496.59	571.39	657.44	756.46

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	10.992
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	640.35	1,058.80	1,032.05	989.93	1,004.82	1,156.15	1,330.28	1,530.64	1,761.17	2,026.42
Operating Cash Flow	242.60	394.77	438.07	391.84	394.89	454.37	522.80	601.54	692.14	796.39
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	234.35	370.76	414.36	371.78	375.10	431.59	496.59	571.39	657.44	756.46
WACC
PV LFCF						393.32	412.43	432.47	453.48	475.51
SUM PV LFCF										2,167.21

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.73
Free cash flow (t + 1)	771.59
Terminal Value	9,981.77
Present Value of Terminal Value	6,274.52

Intrinsic Value

Enterprise Value	8,441.73
Net Debt	754.54
Equity Value	7,687.19
Shares Outstanding	193.04
Equity Value Per Share	39.82