Discounted Cash Flow (DCF) Analysis Levered

Timberland Bancorp, Inc. (TSBK)

$24.05

+0.39 (+1.65%)

All numbers are in Millions, Currency in USD

Stock DCF: 96.25 | 24.05 | 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	48.77	62.18	65.10	65.52	64.65	69.74	75.24	81.16	87.55	94.45
Revenue (%)
Operating Cash Flow	21.45	18.11	33.86	29.63	26.50	29.48	31.80	34.30	37	39.92
Operating Cash Flow (%)
Capital Expenditure	-2.19	-2.15	-1.99	-0.90	-0.91	-1.92	-2.07	-2.23	-2.41	-2.60
Capital Expenditure (%)
Free Cash Flow	19.26	15.96	31.87	28.74	25.59	27.56	29.73	32.07	34.59	37.32

Weighted Average Cost Of Capital

Share price	$ 24.05
Beta	0.928
Diluted Shares Outstanding	8.44
Cost of Debt
Tax Rate	20.17
After-tax Cost of Debt	103.33%
Risk-Free Rate
Market Risk Premium
Cost of Equity	8.072
Total Debt	2.07
Total Equity	203.09
Total Capital	205.15
Debt Weighting	1.01
Equity Weighting	98.99
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	48.77	62.18	65.10	65.52	64.65	69.74	75.24	81.16	87.55	94.45
Operating Cash Flow	21.45	18.11	33.86	29.63	26.50	29.48	31.80	34.30	37	39.92
Capital Expenditure	-2.19	-2.15	-1.99	-0.90	-0.91	-1.92	-2.07	-2.23	-2.41	-2.60
Free Cash Flow	19.26	15.96	31.87	28.74	25.59	27.56	29.73	32.07	34.59	37.32
WACC
PV LFCF						23.18	22.94	22.69	22.45	22.22
SUM PV LFCF										123.73

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%)	9.03
Free cash flow (t + 1)	38.06
Terminal Value	541.46
Present Value of Terminal Value	351.43

Intrinsic Value

Enterprise Value	475.16
Net Debt	-337.58
Equity Value	812.74
Shares Outstanding	8.44
Equity Value Per Share	96.25