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 535.50536.41610.08543.66554.18561.04567.99575.02582.14589.34
Revenue (%)
Operating Cash Flow 239.20116.4565.35348.770.19158.52160.48162.47164.48166.52
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 211.3685.7134.52317.57-29.90128.06129.64131.25132.87134.52

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 535.50536.41610.08543.66554.18561.04567.99575.02582.14589.34
Operating Cash Flow 239.20116.4565.35348.770.19158.52160.48162.47164.48166.52
Capital Expenditure -27.84-30.74-30.83-31.20-30.09-30.47-30.84-31.22-31.61-32
Free Cash Flow 211.3685.7134.52317.57-29.90128.06129.64131.25132.87134.52
WACC
PV LFCF 118.70111.39104.5498.1092.06
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