Discounted Cash Flow (DCF) Analysis Levered

Tompkins Financial Corporation (TMP)

$54.63

-2.76 (-4.81%)

All numbers are in Millions, Currency in USD

Stock DCF: 152.70 | 54.63 | 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	283.02	282.72	295.94	299.11	308.25	314.96	321.81	328.80	335.95	343.26
Revenue (%)
Operating Cash Flow	107.26	101.62	101.39	121.18	103.34	114.73	117.23	119.78	122.38	125.04
Operating Cash Flow (%)
Capital Expenditure	-18.08	-6.01	-4.55	-4.74	-8.97	-9.16	-9.36	-9.57	-9.78	-9.99
Capital Expenditure (%)
Free Cash Flow	89.18	95.60	96.84	116.44	94.37	105.57	107.86	110.21	112.60	115.05

Weighted Average Cost Of Capital

Share price	$ 54.63
Beta	0.608
Diluted Shares Outstanding	14.74
Cost of Debt
Tax Rate	22.50
After-tax Cost of Debt	5.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity	6.563
Total Debt	291.30
Total Equity	805.36
Total Capital	1,096.66
Debt Weighting	26.56
Equity Weighting	73.44
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	283.02	282.72	295.94	299.11	308.25	314.96	321.81	328.80	335.95	343.26
Operating Cash Flow	107.26	101.62	101.39	121.18	103.34	114.73	117.23	119.78	122.38	125.04
Capital Expenditure	-18.08	-6.01	-4.55	-4.74	-8.97	-9.16	-9.36	-9.57	-9.78	-9.99
Free Cash Flow	89.18	95.60	96.84	116.44	94.37	105.57	107.86	110.21	112.60	115.05
WACC
PV LFCF						99.30	95.44	91.72	88.16	84.73
SUM PV LFCF										459.35

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	6.31
Free cash flow (t + 1)	117.35
Terminal Value	2,722.82
Present Value of Terminal Value	2,005.16

Intrinsic Value

Enterprise Value	2,464.50
Net Debt	213.46
Equity Value	2,251.04
Shares Outstanding	14.74
Equity Value Per Share	152.70