Discounted Cash Flow (DCF) Analysis Levered

United Bankshares, Inc. (UBSI)

$36.51

-0.05 (-0.14%)
All numbers are in Millions, Currency in USD
Stock DCF: 90.20 | 36.51 | undervalue

Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 678.83712.62726.531,031.121,006.871,123.931,254.591,400.441,563.251,744.99
Revenue (%)
Operating Cash Flow 253.93292.53147.69140.45609.54388.75433.95484.40540.71603.57
Operating Cash Flow (%)
Capital Expenditure -14.36-5.78-11.08-19.03-15.38-17.59-19.63-21.91-24.46-27.30
Capital Expenditure (%)
Free Cash Flow 239.57286.76136.61121.42594.16371.17414.32462.48516.25576.27

Weighted Average Cost Of Capital

Share price $ 36.51
Beta 1.119
Diluted Shares Outstanding 120.09
Cost of Debt
Tax Rate 20.55
After-tax Cost of Debt 4.60%
Risk-Free Rate
Market Risk Premium
Cost of Equity 9.160
Total Debt 904.10
Total Equity 4,384.49
Total Capital 5,288.59
Debt Weighting 17.10
Equity Weighting 82.90
Wacc

Build Up Free Cash Flow

Year
A/P
2017
Actual
2018
Actual
2019
Actual
2020
Actual
2021
Actual
2022
Projected
2023
Projected
2024
Projected
2025
Projected
2026
Projected
Revenue 678.83712.62726.531,031.121,006.871,123.931,254.591,400.441,563.251,744.99
Operating Cash Flow 253.93292.53147.69140.45609.54388.75433.95484.40540.71603.57
Capital Expenditure -14.36-5.78-11.08-19.03-15.38-17.59-19.63-21.91-24.46-27.30
Free Cash Flow 239.57286.76136.61121.42594.16371.17414.32462.48516.25576.27
WACC
PV LFCF 342.47352.72363.29374.16385.37
SUM PV LFCF 1,818.01

Terminal Value

Growth in perpetuity method:
Long-term growth rate
WACC (%) 8.38
Free cash flow (t + 1) 587.79
Terminal Value 9,213.02
Present Value of Terminal Value 6,161.07

Intrinsic Value

Enterprise Value 7,979.09
Net Debt -2,853.15
Equity Value 10,832.23
Shares Outstanding 120.09
Equity Value Per Share 90.20