Discounted Cash Flow (DCF) Analysis Levered

United Bankshares, Inc. (UBSI)

$26.84

-0.05 (-0.19%)
All numbers are in Millions, Currency in USD
Stock DCF: 94.34 | 26.84 | 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 717.36732.141,036.751,008.581,031.611,143.111,266.661,403.561,555.261,723.36
Revenue (%)
Operating Cash Flow 292.53147.69140.45609.54760.82477.10528.67585.81649.12719.28
Operating Cash Flow (%)
Capital Expenditure -5.78-11.08-19.03-15.38-16.86-16.72-18.53-20.53-22.75-25.21
Capital Expenditure (%)
Free Cash Flow 286.76136.61121.42594.16743.96460.38510.14565.28626.37694.07

Weighted Average Cost Of Capital

Share price $ 26.84
Beta 1.049
Diluted Shares Outstanding 120.09
Cost of Debt
Tax Rate 20.95
After-tax Cost of Debt 3.43%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.579
Total Debt 2,434.10
Total Equity 3,223.22
Total Capital 5,657.32
Debt Weighting 43.03
Equity Weighting 56.97
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 717.36732.141,036.751,008.581,031.611,143.111,266.661,403.561,555.261,723.36
Operating Cash Flow 292.53147.69140.45609.54760.82477.10528.67585.81649.12719.28
Capital Expenditure -5.78-11.08-19.03-15.38-16.86-16.72-18.53-20.53-22.75-25.21
Free Cash Flow 286.76136.61121.42594.16743.96460.38510.14565.28626.37694.07
WACC
PV LFCF 430.54446.16462.34479.11496.48
SUM PV LFCF 2,314.64

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.93
Free cash flow (t + 1) 707.95
Terminal Value 14,360.08
Present Value of Terminal Value 10,272.09

Intrinsic Value

Enterprise Value 12,586.73
Net Debt 1,257.45
Equity Value 11,329.28
Shares Outstanding 120.09
Equity Value Per Share 94.34