Discounted Cash Flow (DCF) Analysis Levered

The Community Financial Corporation (TCFC)

$26.49

+0.32 (+1.22%)

All numbers are in Millions, Currency in USD

Stock DCF: 99.19 | 26.49 | 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	54.95	59.30	69.33	74.34	82.71	91.66	101.58	112.58	124.77	138.27
Revenue (%)
Operating Cash Flow	19.40	15.69	28.08	33.22	35.43	34.79	38.56	42.73	47.36	52.48
Operating Cash Flow (%)
Capital Expenditure	-1.78	-0.81	-0.25	-2.65	-1.76	-1.95	-2.16	-2.40	-2.66	-2.95
Capital Expenditure (%)
Free Cash Flow	17.62	14.88	27.83	30.57	33.66	32.84	36.39	40.33	44.70	49.54

Weighted Average Cost Of Capital

Share price	$ 26.49
Beta	0.747
Diluted Shares Outstanding	5.89
Cost of Debt
Tax Rate	25.29
After-tax Cost of Debt	18.16%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.144
Total Debt	37.77
Total Equity	156.12
Total Capital	193.89
Debt Weighting	19.48
Equity Weighting	80.52
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	54.95	59.30	69.33	74.34	82.71	91.66	101.58	112.58	124.77	138.27
Operating Cash Flow	19.40	15.69	28.08	33.22	35.43	34.79	38.56	42.73	47.36	52.48
Capital Expenditure	-1.78	-0.81	-0.25	-2.65	-1.76	-1.95	-2.16	-2.40	-2.66	-2.95
Free Cash Flow	17.62	14.88	27.83	30.57	33.66	32.84	36.39	40.33	44.70	49.54
WACC
PV LFCF						27.49	27.88	28.27	28.67	29.07
SUM PV LFCF										154.51

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.29
Free cash flow (t + 1)	50.53
Terminal Value	693.12
Present Value of Terminal Value	444.53

Intrinsic Value

Enterprise Value	599.05
Net Debt	14.44
Equity Value	584.61
Shares Outstanding	5.89
Equity Value Per Share	99.19