Discounted Cash Flow (DCF) Analysis Levered

TriCo Bancshares (TCBK)

$32.03

+0.22 (+0.69%)

All numbers are in Millions, Currency in USD

Stock DCF: 206.31 | 32.03 | undervalue

Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	259.36	305.39	309.26	333.72	404.42	453.06	507.55	568.59	636.98	713.59
Revenue (%)
Operating Cash Flow	91.07	102.81	114.80	132.21	162.89	168.35	188.60	211.28	236.69	265.16
Operating Cash Flow (%)
Capital Expenditure	-7.44	-4.29	-2.81	-3.20	-3.62	-6.37	-7.14	-8	-8.96	-10.04
Capital Expenditure (%)
Free Cash Flow	83.63	98.51	111.99	129.01	159.27	161.98	181.46	203.28	227.73	255.12

Weighted Average Cost Of Capital

Share price	$ 32.03
Beta	0.593
Diluted Shares Outstanding	29.88
Cost of Debt
Tax Rate	27.88
After-tax Cost of Debt	1.55%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.372
Total Debt	442.55
Total Equity	957.13
Total Capital	1,399.68
Debt Weighting	31.62
Equity Weighting	68.38
Wacc

Build Up Free Cash Flow

Year A/P	2018 Actual	2019 Actual	2020 Actual	2021 Actual	2022 Actual	2023 Projected	2024 Projected	2025 Projected	2026 Projected	2027 Projected
Revenue	259.36	305.39	309.26	333.72	404.42	453.06	507.55	568.59	636.98	713.59
Operating Cash Flow	91.07	102.81	114.80	132.21	162.89	168.35	188.60	211.28	236.69	265.16
Capital Expenditure	-7.44	-4.29	-2.81	-3.20	-3.62	-6.37	-7.14	-8	-8.96	-10.04
Free Cash Flow	83.63	98.51	111.99	129.01	159.27	161.98	181.46	203.28	227.73	255.12
WACC
PV LFCF						153.49	162.94	172.97	183.62	194.92
SUM PV LFCF										867.94

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	5.53
Free cash flow (t + 1)	260.22
Terminal Value	7,371.77
Present Value of Terminal Value	5,632.38

Intrinsic Value

Enterprise Value	6,500.32
Net Debt	335.32
Equity Value	6,165
Shares Outstanding	29.88
Equity Value Per Share	206.31