Discounted Cash Flow (DCF) Analysis Levered

TowneBank (TOWN)

$23.4127

+0.17 (+0.74%)

All numbers are in Millions, Currency in USD

Stock DCF: 110.47 | 23.4127 | 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	448.40	532	563.24	662.23	679	754.74	838.94	932.52	1,036.55	1,152.19
Revenue (%)
Operating Cash Flow	124.77	307.35	-16.03	127.89	518.82	269.40	299.45	332.86	369.99	411.27
Operating Cash Flow (%)
Capital Expenditure	-13.44	-20.85	-36.72	-45.79	-31.20	-37.66	-41.86	-46.53	-51.72	-57.48
Capital Expenditure (%)
Free Cash Flow	111.32	286.50	-52.75	82.10	487.62	231.75	257.60	286.33	318.28	353.78

Weighted Average Cost Of Capital

Share price	$ 23.4,127
Beta	0.970
Diluted Shares Outstanding	72.56
Cost of Debt
Tax Rate	23.03
After-tax Cost of Debt	7.80%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.191
Total Debt	405.02
Total Equity	1,698.90
Total Capital	2,103.92
Debt Weighting	19.25
Equity Weighting	80.75
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	448.40	532	563.24	662.23	679	754.74	838.94	932.52	1,036.55	1,152.19
Operating Cash Flow	124.77	307.35	-16.03	127.89	518.82	269.40	299.45	332.86	369.99	411.27
Capital Expenditure	-13.44	-20.85	-36.72	-45.79	-31.20	-37.66	-41.86	-46.53	-51.72	-57.48
Free Cash Flow	111.32	286.50	-52.75	82.10	487.62	231.75	257.60	286.33	318.28	353.78
WACC
PV LFCF						214.34	220.36	226.55	232.91	239.45
SUM PV LFCF										1,133.60

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	8.12
Free cash flow (t + 1)	360.86
Terminal Value	5,896.37
Present Value of Terminal Value	3,990.75

Intrinsic Value

Enterprise Value	5,124.35
Net Debt	-2,891.62
Equity Value	8,015.97
Shares Outstanding	72.56
Equity Value Per Share	110.47