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	712.62	726.53	1,031.12	1,006.87	1,031.61	1,145.04	1,270.94	1,410.69	1,565.80	1,737.96
Revenue (%)
Operating Cash Flow	292.53	147.69	140.45	609.54	760.82	479.29	531.99	590.48	655.41	727.47
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	286.76	136.61	121.42	594.16	746.10	462.95	513.85	570.35	633.06	702.67

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	712.62	726.53	1,031.12	1,006.87	1,031.61	1,145.04	1,270.94	1,410.69	1,565.80	1,737.96
Operating Cash Flow	292.53	147.69	140.45	609.54	760.82	479.29	531.99	590.48	655.41	727.47
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	286.76	136.61	121.42	594.16	746.10	462.95	513.85	570.35	633.06	702.67
WACC
PV LFCF						434.08	451.77	470.17	489.33	509.27
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