Discounted Cash Flow (DCF) Analysis Levered

First Financial Corporation (THFF)

$36.98

-0.63 (-1.68%)

All numbers are in Millions, Currency in USD

Stock DCF: 132.08 | 36.98 | 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	154.78	170.10	188.82	185.48	211.76	229.39	248.48	269.17	291.57	315.84
Revenue (%)
Operating Cash Flow	57.45	49.90	77.42	55.07	78.79	79.99	86.64	93.86	101.67	110.13
Operating Cash Flow (%)
Capital Expenditure	-2.01	-1.10	-3.91	-2.48	-2.84	-3.07	-3.33	-3.61	-3.91	-4.23
Capital Expenditure (%)
Free Cash Flow	55.43	48.80	73.52	52.58	75.95	76.91	83.32	90.25	97.76	105.90

Weighted Average Cost Of Capital

Share price	$ 36.98
Beta	0.567
Diluted Shares Outstanding	13.72
Cost of Debt
Tax Rate	18.97
After-tax Cost of Debt	18.38%
Risk-Free Rate
Market Risk Premium
Cost of Equity	5.994
Total Debt	80.46
Total Equity	507.22
Total Capital	587.68
Debt Weighting	13.69
Equity Weighting	86.31
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	154.78	170.10	188.82	185.48	211.76	229.39	248.48	269.17	291.57	315.84
Operating Cash Flow	57.45	49.90	77.42	55.07	78.79	79.99	86.64	93.86	101.67	110.13
Capital Expenditure	-2.01	-1.10	-3.91	-2.48	-2.84	-3.07	-3.33	-3.61	-3.91	-4.23
Free Cash Flow	55.43	48.80	73.52	52.58	75.95	76.91	83.32	90.25	97.76	105.90
WACC
PV LFCF						71.42	71.84	72.27	72.69	73.12
SUM PV LFCF										361.34

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.69
Free cash flow (t + 1)	108.02
Terminal Value	1,898.44
Present Value of Terminal Value	1,310.75

Intrinsic Value

Enterprise Value	1,672.09
Net Debt	-139.57
Equity Value	1,811.67
Shares Outstanding	13.72
Equity Value Per Share	132.08