Discounted Cash Flow (DCF) Analysis Levered

Texas Capital Bancshares, Inc. (TCBI)

$59.03

-0.39 (-0.66%)
All numbers are in Millions, Currency in USD
Stock DCF: 297.84 | 59.03 | 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 820.08977.951,049.59989.72879.30900.66922.54944.94967.90991.41
Revenue (%)
Operating Cash Flow 132.16-679.71-240.272,639.87657.31477.72489.32501.21513.38525.85
Operating Cash Flow (%)
Capital Expenditure -12.26-7.65-16.65-2.80-4.13-8.32-8.52-8.72-8.94-9.15
Capital Expenditure (%)
Free Cash Flow 119.90-687.37-256.922,637.07653.19469.40480.80492.48504.44516.70

Weighted Average Cost Of Capital

Share price $ 59.03
Beta 1.507
Diluted Shares Outstanding 50.58
Cost of Debt
Tax Rate 24.88
After-tax Cost of Debt 2.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity 10.919
Total Debt 3,128.74
Total Equity 2,985.91
Total Capital 6,114.65
Debt Weighting 51.17
Equity Weighting 48.83
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 820.08977.951,049.59989.72879.30900.66922.54944.94967.90991.41
Operating Cash Flow 132.16-679.71-240.272,639.87657.31477.72489.32501.21513.38525.85
Capital Expenditure -12.26-7.65-16.65-2.80-4.13-8.32-8.52-8.72-8.94-9.15
Free Cash Flow 119.90-687.37-256.922,637.07653.19469.40480.80492.48504.44516.70
WACC
PV LFCF 440.13422.71405.98389.91374.48
SUM PV LFCF 2,033.22

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.65
Free cash flow (t + 1) 527.03
Terminal Value 11,333.97
Present Value of Terminal Value 8,214.44

Intrinsic Value

Enterprise Value 10,247.66
Net Debt -4,817.92
Equity Value 15,065.58
Shares Outstanding 50.58
Equity Value Per Share 297.84