Discounted Cash Flow (DCF) Analysis Levered

United Bankshares, Inc. (UBSI)

$32.2

+2.14 (+7.12%)
All numbers are in Millions, Currency in USD
Stock DCF: 102.16 | 32.2 | 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 712.62726.531,031.121,006.871,031.611,145.041,270.941,410.691,565.801,737.96
Revenue (%)
Operating Cash Flow 292.53147.69140.45609.54760.82479.29531.99590.48655.41727.47
Operating Cash Flow (%)
Capital Expenditure -5.78-11.08-19.03-15.38-14.72-16.34-18.14-20.13-22.35-24.80
Capital Expenditure (%)
Free Cash Flow 286.76136.61121.42594.16746.10462.95513.85570.35633.06702.67

Weighted Average Cost Of Capital

Share price $ 32.2
Beta 1.045
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 8.670
Total Debt 2,434.10
Total Equity 3,866.91
Total Capital 6,301.01
Debt Weighting 38.63
Equity Weighting 61.37
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 712.62726.531,031.121,006.871,031.611,145.041,270.941,410.691,565.801,737.96
Operating Cash Flow 292.53147.69140.45609.54760.82479.29531.99590.48655.41727.47
Capital Expenditure -5.78-11.08-19.03-15.38-14.72-16.34-18.14-20.13-22.35-24.80
Free Cash Flow 286.76136.61121.42594.16746.10462.95513.85570.35633.06702.67
WACC
PV LFCF 434.08451.77470.17489.33509.27
SUM PV LFCF 2,354.61

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 6.65
Free cash flow (t + 1) 716.72
Terminal Value 15,413.32
Present Value of Terminal Value 11,171

Intrinsic Value

Enterprise Value 13,525.61
Net Debt 1,257.45
Equity Value 12,268.16
Shares Outstanding 120.09
Equity Value Per Share 102.16