Discounted Cash Flow (DCF) Analysis Levered

Trustmark Corporation (TRMK)

$23.06

-0.03 (-0.11%)

All numbers are in Millions, Currency in USD

Stock DCF: 44.27 | 23.06 | 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	535.50	536.41	610.08	543.66	554.18	561.04	567.99	575.02	582.14	589.34
Revenue (%)
Operating Cash Flow	239.20	116.45	65.35	348.77	0.19	158.52	160.48	162.47	164.48	166.52
Operating Cash Flow (%)
Capital Expenditure	-27.84	-30.74	-30.83	-31.20	-30.09	-30.47	-30.84	-31.22	-31.61	-32
Capital Expenditure (%)
Free Cash Flow	211.36	85.71	34.52	317.57	-29.90	128.06	129.64	131.25	132.87	134.52

Weighted Average Cost Of Capital

Share price	$ 23.06
Beta	0.777
Diluted Shares Outstanding	63.65
Cost of Debt
Tax Rate	16.50
After-tax Cost of Debt	25.58%
Risk-Free Rate
Market Risk Premium
Cost of Equity	7.412
Total Debt	38.93
Total Equity	1,467.67
Total Capital	1,506.60
Debt Weighting	2.58
Equity Weighting	97.42
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	535.50	536.41	610.08	543.66	554.18	561.04	567.99	575.02	582.14	589.34
Operating Cash Flow	239.20	116.45	65.35	348.77	0.19	158.52	160.48	162.47	164.48	166.52
Capital Expenditure	-27.84	-30.74	-30.83	-31.20	-30.09	-30.47	-30.84	-31.22	-31.61	-32
Free Cash Flow	211.36	85.71	34.52	317.57	-29.90	128.06	129.64	131.25	132.87	134.52
WACC
PV LFCF						118.70	111.39	104.54	98.10	92.06
SUM PV LFCF										524.79

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	7.88
Free cash flow (t + 1)	137.21
Terminal Value	2,333.44
Present Value of Terminal Value	1,596.95

Intrinsic Value

Enterprise Value	2,121.75
Net Debt	-695.86
Equity Value	2,817.60
Shares Outstanding	63.65
Equity Value Per Share	44.27